Statutory Liquidity Ratio Subject: Economy Context: Banks’ excess holdings of SLR securities moderate to 8.8% from 10.4 per cent at end-March 2022. Details: Reduction in the excess holdings of statutory liquidity ratio (SLR) securities of Scheduled Commercial Banks (SCBs) indicates credit rise. Current SLR in India – 18.00% (minimum required) Excess SLR holdings […]

    Bank deposits Subject: Economy Context: The flow of financial assets of households witnessed a decline with bank deposits registering a fall in growth, even as their holdings in mutual funds, equity and small savings showed a significant rise during fiscal 2021-22. Details: Bank deposits recorded a decline in 48% as interest rates declined […]

    Fodder Inflation Subject: Economy Context: Fodder inflation at 9-yr high, late rains, crop damage deepen crisis Details: The Wholesale Price Index or WPI-based fodder inflation – 25.54 per cent in August 2022, the highest in the last nine years.  Fodder Inflation has been  rising since December 2021.  The overall WPI inflation in August […]

    Inflation fight RBI hikes repo rate Subject: Economy Context: Inflation fight – RBI hikes repo rate by 50 bps, RBI Governor blames it on ‘new storm’. Steps taken Policy focus on withdrawal of accommodation, cuts FY23 growth to 7% Faced with the challenge of elevated retail inflation and a ‘storm’ arising from the […]