Here are the key highlights from RBI annual report 2019:
RBI contingency fund was down to Rs1.96 lakh cr in FY19 from Rs2.32 lakh cr in FY18.
Currency in circulation jumps 17% to Rs21.10 trillion.
Several uncertainties in near-term economic outlook for India.
Growth deceleration a "soft patch mutating into cyclical downswing" and not structural.
Lack of domestic demand ailing the animal spirits and need to focus on reviving private investments and consumption.
Post-IL&FS crisis, the credit flow from NBFCs to commercial sector down 20%.
Banks report 6,801 fraud cases, involving Rs71,542.93cr in FY19.
Farm loan waivers, seventh pay panel implementation, income support schemes constraining states' ability to deliver fiscal stimulus.
After Rs52,637cr payout to government from excess reserves, RBI's contingency fund stands at Rs1,96,344cr.
With a normal monsoon expected to keep agricultural production up to mark this year, food prices will not rise by much.
According to the RBI Annual report, the number of cases of frauds reported by banks saw a jump of 15% in 2018-19 on yoy basis, with the amount increasing by 73.8% in the year.
In FY19, the banking sector reported 6,801 frauds involving Rs71,542.93cr as against 5,916 cases involving Rs41,167.04cr reported in 2017-18.
In FY19, the public sector banks accounted for 90.2% of the amount that was involved in fraud, while the private sector banks accounted for 7.7%, and the foreign banks accounted for 1.3%.
In terms of the number of frauds, the share of public sector banks is 55.4%, private banks 30.7% share, and foreign banks 11.2%, as per the annual report.
“In terms of the number of frauds, too, those related to advances were predominant followed by card/internet-related frauds and deposits-related frauds. Frauds relating to card/internet and deposits constituted only 0.3 per cent of the total value of frauds in 2018-19,” the RBI said in the annual report for 2019 released Thursday.
Further, fresh slippages have also come down and as a result, the system-level provision coverage ratio has jumped to 60.9% during the period.
Steadfastly pursued recognition, repair and resolution resulted in the gross NPA ratio declining to 9.1% in FY19 from 11.2% in FY18, the RBI report added.
Capital buffers have been strengthened by recapitalisation to the tune of Rs2.7 lakh cr, including the budgetary allocations for FY20 and the abatement of stress has rekindled bank credit inflows, which are getting broad-based, it said.
The report notes that the new NPA recognition and resolution norms issued in June 2019 provide incentives for early resolution, with discretion to lenders on the processes.
The RBI has also proposed to create a mechanism for sharing of fraud-related information among urban co-operative banks on similar lines of central fraud registry that is in place for commercial banks.
The RBI in its annual report said that they also subjected 57 banks through IT examination to check their cybersecurity preparedness and compliances.