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This Article is From Jul 24, 2020

Motilal Oswal: A Primer On RBI’s Balance Sheet 

Motilal Oswal: A Primer On RBI’s Balance Sheet 
A pedestrian walks past the Reserve Bank of India (RBI) building in Mumbai, India. (Photographer: Kanishka Sonthalia/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Reserve Bank of India has injected large liquidity into the financial system during the past five months through various measures. It has cut policy interest rates, (temporarily) reduced the cash reserve ratio and announced long-term refinance operations – targeted or not.

Consequently, the banking system's net surplus has increased from Rs 3 trillion (or 2.2% of net demand and time liabilities) in early 2020s to Rs 4.3 trillion (or approximately 3% of NDTL) currently.

In this note, we discuss the impact of these liquidity-enhancing measures on the RBI's balance sheet and money supply.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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