RBI’s costly experiments with the currency
During 2023-2024, the average annual volatility of the rupee-dollar exchange rate was 1.8% – the lowest in over two decades. In this post, Patnaik, Pandey and Sengupta explain why sudden and sharp l...
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Radhika Pandey
Ila Patnaik
Rajeswari Sengupta
21 February, 2025
- Perspectives
When is corporate debt a threat to macroeconomic stability?
Since the 2007-08 Global Financial Crisis, policymakers have focused on household debt as the primary risk factor for macroeconomic stability. Should they be similarly worried about corporate debt? Ba...
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Victoria Ivashina
Şebnem Kalemli-Özcan
Luc Laeven
Karsten Muller
18 October, 2024
- Articles
WazirX: Socialisation of losses and need for financial regulation
The cryptocurrency exchange WazirX recently faced a security breach resulting in huge losses for its users. In this post, Nipuna Varman evaluates the ‘loss socialisation’ recovery plan that was in...
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Nipuna Varman
10 October, 2024
- Perspectives
Accumulation of household debt in India: Repercussions for economic recovery
The Covid-19 crisis and the subsequent recession has brought about a shift in financial savings; households have cut back on consumption and reduced their demand for credit, and banks tightened lendin...
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Isha Gupta
18 July, 2022
- Perspectives
Not exactly bad news: Fed tightening cycle’s implications for emerging markets
The conventional perception, that US Federal Reserve rate hikes necessarily imply capital outflows from emerging markets, is an incomplete assessment. This article disaggregates Fed hikes’ effects o...
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Gabriele Ciminelli
John Rogers
Wenbin Wu
15 June, 2022
- Articles
Can access to finance spur entrepreneurship in Indian informal sector?
Credit constraints, a consequence of the widespread failure of credit markets in developing countries, are widely regarded as a key constraint to entrepreneurship. Using 2010-11 and 2015-16 National S...
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Ira N. Gang
Rajesh Raj S.N.
Kunal Sen
12 May, 2022
- Articles
Consumption smoothing and household savings: Role of demographics and durables
Canonical predictions of life-cycle models indicate that households will smooth consumption over their lifetimes. Conversely, empirical data from high-income countries have shown that consumption cont...
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Neha Bairoliya
Areendam Chanda
25 April, 2022
- Articles
International financial architecture and emerging economies
Policy responses to Covid-19 have been a mix of fiscal and monetary policy – with the latter doing the heavy-lifting in both developed and developing countries. Against this backdrop, in this editio...
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Viral Acharya
Amartya Lahiri
05 April, 2022
- Videos
International financial architecture and emerging economies
Policy responses to Covid-19 have been a mix of fiscal and monetary policy – with the latter doing the heavy-lifting in both developed and developing countries. Against this backdrop, in this editio...
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Viral Acharya
Amartya Lahiri
05 April, 2022
- Podcasts
How do RBI’s actions (and words) affect financial markets?
Financial markets in developed countries are known to react substantially to monetary shocks, that is, surprise changes in policy rates announced by the central bank. Based on a narrative analysis of ...
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Aeimit Lakdawala
Rajeswari Sengupta
09 March, 2022
- Articles
Budget 2022-23: Capital gains tax, and asset-price stability
Although there is a need to ensure asset-price stability, the 2022-23 Budget has left the capital gains tax on equity investment unchanged. In this post, Gurbachan Singh examines the idea of a tax as ...
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Gurbachan Singh
04 February, 2022
- Perspectives
Mind the tone: Text analysis of Monetary Policy Committee statements
Government of India appoints three external members on the six-member Monetary Policy Committee, and the statements of all MPC members are released after every committee meeting. Based on data from 30...
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Vidya Mahambare
Jalaj Pathak
31 January, 2022
- Articles
Evaluating the risks in opening up the banking sector
The RBI (Reserve Bank of India) has accepted some of the key recommendations of the Internal Working Group (IWG) to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector...
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K. Srinivasa Rao
14 January, 2022
- Perspectives
Thinking about financial sector reforms in India
A key element of the economy that needs to function well in order to facilitate India’s strong and sustained recovery from the pandemic is the financial system. In this post, Sengupta and Vardhan d...
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Rajeswari Sengupta
Harsh Vardhan
15 November, 2021
- Perspectives
Credit risk management policies of banks: A new approach
Despite increasing robustness of banks and multipurpose liquidity provided by the Reserve Bank of India, there is no perceptible improvement in credit growth. K. Srinivasa Rao proposes a new approach ...
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K. Srinivasa Rao
22 October, 2021
- Perspectives
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India’s insurance sector: Challenges and opportunities
While India’s insurance sector has been growing dynamically in recent years, its share in the global insurance market remains abysmally low. This article traces the journey of the Indian insurance s...
Kuntala Bandyopadhyay
Saon Ray
Vasundhara Thakur
31 August, 2020
- Articles
Financial inclusion in India: Progress and prospects
Financial inclusion is globally considered as a critical indicator of development and well-being of society. In this post, Srinivasa Rao traces the financial inclusion journey in India so far, and dis...
K. Srinivasa Rao
11 July, 2018
- Perspectives
Thinking about financial sector reforms in India
A key element of the economy that needs to function well in order to facilitate India’s strong and sustained recovery from the pandemic is the financial system. In this post, Sengupta and Vardhan d...
Rajeswari Sengupta
Harsh Vardhan
15 November, 2021
- Perspectives