PART ONE : THE ECONOMY: REVIEW AND PROSPECTS

I. ASSESSMENT AND PROSPECTS

Assessment of 2012-13

Prospects for 2013-14

II. ECONOMIC REVIEW

The Real Economy

Price Situation

Money and Credit

Financial Markets

Government Finances

External Sector

PART TWO: THE WORKING AND OPERATIONS OF THE RESERVE BANK OF INDIA

III. MONETARY POLICY OPERATIONS

Monetary Policy Operations: Context and Rationale

IV. CREDIT DELIVERY AND FINANCIAL INCLUSION

Credit Delivery

Financial Inclusion

Financial Literacy Activities

V. DEVELOPMENT AND REGULATION OF FINANCIAL MARKETS

Government Securities Market

Foreign Exchange Market

Derivatives Market

VI. REGULATION, SUPERVISION AND FINANCIAL STABILITY

Financial Stability Assessment

Assessment of the Banking Sector

Major Decisions Taken by Board for Financial Supervision

Commercial Banks

Customer Service

Banking Codes and Standards Board of India

Urban Co-operative Banks

Rural Co-operatives

Deposit Insurance and Credit Guarantee Corporation

Non-Banking Financial Companies

VII. PUBLIC DEBT MANAGEMENT

Debt Management of Central Government

Debt Management of State Governments

VIII. CURRENCY MANAGEMENT

Banknotes in Circulation

Coins in Circulation

Currency Operations

Clean Note Policy

Counterfeit Banknotes

Expenditure on Security Printing and Distribution

The way forward

IX. PAYMENT AND SETTLEMENT SYSTEMS AND INFORMATION TECHNOLOGY

Trends in Payment Systems

Policy Initiatives

Information Technology Initiatives for the Banking System

Information Technology within Reserve Bank

X. GOVERNANCE, HUMAN RESOURCES DEVELOPMENT AND ORGANISATIONAL MANAGEMENT

Initiatives for Improved Governance

Initiatives for Improved Communication

Human Resource Development Initiatives

Initiatives in Organisation Management

XI. THE RESERVE BANK’S ACCOUNTS FOR 2012-13

Balance Sheet

Income

Expenditure

Statement of Significant Accounting Policies and Notes to the Accounts forming part of the Financial Statements for the year ended June 30, 2013

Annex I : List of Speeches by Governor and Deputy Governors: April 2012 to July 2013

Annex II : Visits of Foreign Delegations to the Reserve Bank of India during July 2012 to June 2013

INDEX OF APPENDIX TABLES

1. Macroeconomic and Financial Indicators

2. Growth Rates and Sectoral Composition of Real Gross Domestic Product

3. Gross Domestic Saving and Investment

4. Financial Saving of the Household Sector (Gross)

5. Agricultural Production

6. Procurement, Off-Take and Stocks of Foodgrains

7. Trends in Index of Industrial Production

8. Variations in Index Numbers of Wholesale Prices

9. Variations in Reserve Money

10. Variations In Money Stock

11. Sectoral Deployment of Gross Bank Credit

12. Capital Market - Primary and Secondary

13. Turnover in Indian Derivatives Market

14. Indices of Real Effective Exchange Rate (Reer) and Nominal Effective Exchange Rate (Neer) of the Indian Rupee

15. Key Fiscal Indicators

16. Budgetary Operations of the State Governments

17. India’s Exports and Imports

18. India’s Overall Balance of Payments

19. Foreign Direct Investment Flows to India: Country-Wise and Industry-wise

20. India’s Foreign Exchange Reserves

21. India’s External Debt

BOXES

II.1 Industrial Slowdown: Causes and Remedies

II.2 Indian Coal Sector: Issues & Strategies

II.3 Pricing Power and Inflation

II.4 Core Inflation: Alternate Methodologies

II.5 Producer Price Index: The Concept and Measurement

II.6 Role of Forward-looking Surveys in Monetary Policy Formulation

II.7 Unconventional Monetary Policy by Central Banks in Developed Economies: Impact on Financial Markets

II.8 Relationship between Exchange Rate Volatility and Futures Trading in India

II.9 Non Deliverable Forward Market and Onshore INR Market: Evidence on Inter-linkages

II.10 Cyclicality of Fiscal Policy: The Indian Experience

II.11 Recommendations of the Working Group to Study Issues relating to Gold Imports and Gold Loan NBFCs in India

III.1 Sensitivity of Investment and Growth to Change in Real Interest Rate

III.2 Measurement of Inflation Expectations

IV.1 Recommendations of Expert Committee to examine the Three-Tier Short-Term Rural Co-operative Credit Structure (STCCS)

IV.2 Guidelines on Basic Savings Bank Deposit Accounts for Financial Inclusion

V.1 Buyback/ Switches for Liability Management

VI.1 India: Financial Sector Stability Assessment

VI.2 Impact of NPAs on profitability of banks

VI.3 Review of prudential guidelines on restructuring of advances by banks and financial institutions
– Major recommendations of the Working Group

VI.4 Licensing of new banks in private sector

VI.5 Deposit Insurance in the Financial System – Some Observations

VI.6 NBFC-Factors

VI.7 Legal developments in the banking sector

VI.8 Major recommendations of the Financial Sector Legislative Reform Commission

VII.1 Issuance of Inflation Indexed Bonds

VIII.1 Plastic Banknotes

IX.1 Vision Document 2012-15

IX.2 Technical Committee to Examine Uniform Routing Code and Account Number Structure

IX.3 Committee to Recommend Implementation of GIRO-based payment systems in India

IX.4 Cloud Computing - Trends, Issues and Concerns

X.1 RBIQ

X.2 Shashi Rajagopalan Memorial Awards

X.3 Code of Ethics and Governance

XI.1 Technical Committee to review the form of presentation of the Balance Sheet and Profit & Loss Account

CHARTS

II.1 Real GDP Growth

II.2 Expenditure Side of GDP

II.3 Rate of Saving and Investment

II.4 Household Financial Savings

II.5 Rainfall Deficiency and Agricultural Production

II.6 Storage Capacity Vs. Foodgrains Production

II.7 Growth in IIP (Y-o-Y)

II.8 Industrial Growth

II.9 Growth in the Index of Eight Core Industries

II.10 Growth in Services Sector GDP

II.11 Incremental Capacity Addition and Growth Rate of Electricity Generation

II.12 Road Projects Awarded/Completed by NHAI

II.13 Target Achieved for New Railway Lines

II.14 Total Employment and Workers (in millions)

II.15 Gross Value added per worker and Wages per worker at constant prices

II.16 Unemployment Rate

II.17 Trends in Inflation: Wholesale Price Index

II.18 Inflation Volatility and Variability

II.19 Relative Prices of Food and Fuel (WPI)

II.20 Trends in Inflation and Output Gap

II.21 Drivers of Food Inflation

II.22 Global and Domestic Fuel Prices

II.23 Inflation in Non-food Manufactured Products

II.24 Trends in Global Commodity Prices

II.25 WPI and New CPI Inflation

II.26 Wages and Inflation in Rural Areas

II.27 Liquidity Conditions

II.28 Increase (+) / Decrease (-) in Liquidity through OMO/GoI Balance

II.29 Money Supply, Reserve Money Growth (y-o-y) and Money Multiplier

II.30 Wedge between Credit and Deposit Growth

II.31 Movements in the Financial Markets

II.32 Bank of Japan Asset Purchase and Japanese Financial Markets

II.33 Total international reserve assets – Amount and Per cent share

II.34 Money Market Rates

II.35 CD Issuance and WAEIR

II.36 CP Issuance and WADR

II.37 Yield curve for Government Securities

II.38 Average daily volume and 10-Year Generic Yield

II.39 Yield on 5-Year Corporate Bond

II.40 Trading Value of the Central Government dated Securities and Corporate Bonds

II.41 Resource Mobilisation through SME IPOs during 2012-13

II.42 Sectoral Pattern of SME IPOs

II.43 FII and Mutual Fund Investment in the Equity Market

II.44 Movement of Sectoral Indices of BSE

II.45 Turnover in Equity Derivative Segment in 2012-13

II.46 House Price Indices

II.47 Key Deficit Indicators of the Central Government

II.48 Disinvestment

II.49 Major Subsidies of Central Government

II.50 Trend in select expenditures

II.51 India's Merchandise Trade

II.52 GDP growth and Import

II.53 Trend in International Oil Prices and Quantum of POL Imports

II.54 Trends in Major Components of Capital Flows (Net)

II.55 Spread between 10-year Sovereign Yield of India and USA

II.56 Exchange Rate Movements and Current Account Deficit

II.57 Appreciation/Depreciation of Indian Rupee and Movement against US dollar

III.1 Estimated Weighted Average Lending Rates - Real and Nominal

VII.1 Cash Balance of the Central Government

TEXT TABLES

II.1 Changes in Employment

II.2 Increases in Select Farm Input Prices

II.3 Professional Forecasters’ WPI and CPI Inflation Median Forecast for 5 and 10 Years Ahead

II.4 Bank Group Wise Asset Quality Indicators

II.5 Primary Market Trends

II.6 Key Stock Market Indicators

II.7 External Sector Vulnerability Indicators

III.1 Movement in Money Market Rates and Deposit/Lending Rates of Banks

III.2 Modal Deposit Rates, WALRs and NPAs of SCBs (Excluding RRBs)

III.3 Sectoral Median Lending Rates of Scheduled Commercial Banks

IV.1 Priority Sector Advances

IV.2 Recovery of Direct Agriculture Advances

IV.3 Credit to Micro and Small Enterprises by SCBs

IV.4 Financial Inclusion Plan - Summary progress of all banks including RRBs

VI.1 Select Financial Indicators

VI.2 Year-wise progress in mergers/acquisitions as on March 31, 2013

VI.3 State-wise progress in mergers/acquisition of UCBs

VII.1 Gross and Net Market Borrowings of the Central Government

VII.2 Central Government’s Market Loans - A Profile

VII.3 Issuance of GoI Dated Securities- Maturity Pattern

VII.4 States' Market Borrowings

VII.5 Residual Maturity Profile of Outstanding State Development Loans and Power Bonds (as at end-March 2013)

VII.6 Utilisation of WMA/OD and Investment of State Governments (Average monthly outstanding)

VII.7 No. of Days States Availed of Special/ Normal WMA and OD

VII.8 Investments in ITBs and ATBs by State Governments/UTs

VIII.1 Banknotes in Circulation

VIII.3 Currency Chests and Small Coin Depots as at end-December 2012

VIII.4 Indent and Supply of Banknotes by the Presses to RBI (April-March)

VIII.5 Indent and Supply of Coins by the Mints to RBI (April-March)

VIII.6 Disposal of Soiled and Supply of Banknotes by the Reserve Bank to the Currency Chests

VIII.7 Number of Counterfeit Notes Detected (April-March)

VIII.8 Denomination-wise Counterfeit Notes Detected by the Banking System (April-March)

IX.1 Payment System Indicators - Annual Turnover

X.1 Reserve Bank Training Establishments – Programmes Conducted

X.2 Number of Officers Trained in External Training Institutions in India and Abroad

X.3 Category-wise Actual Staff Strength (As on June 30, 2013)

X.4 Reserve Bank's Office-wise Staff Strength (As on June 30, 2013)

XI.1 Holding of Gold

XI.2 Deposits : Others

XI.3 Details of Other Liabilities

XI.4 Balances in Contingency Reserve and Asset Development Reserve

XI.5 Balances in Currency and Gold Revaluation Account (CGRA), Exchange Equalisation Account (EEA) and Investment Revaluation Account (IRA)

XI.6 Details of Foreign Currency Assets

XI.7 Investments of the Banking Department

XI.8 Holdings in subsidiaries/associates

XI.9 Details of Other Assets

XI.10 Gross Income

XI.11 Earnings from Foreign Sources

XI.12 Earnings from Domestic Sources

XI.13 Expenditure

XI.14 Agency Charges

XI.15 Trends in Gross Income, Expenditure and Net Disposable Income

XI.16 Contingency and Asset Development Reserves

XI.17(a) Foreign Exchange Reserves(in Rupees)

XI.17(b) Foreign Exchange Reserves(in USD)

XI.18 Assumptions made for arriving at actuarial valuation of superannuation liabilities