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Amid questions on the depleting <keyword id="20776807" type="General" weightage="100" keywordseo="loan-to-deposit-ratio" source="keywords">loan-to-deposit ratio</keyword> in <keyword id="19895091" type="General" weightage="20" keywordseo="Indian-banks" source="keywords">Indian banks</keyword>, a recent report by <keyword id="19896146" type="General" weightage="20" keywordseo="Motilal-Oswal" source="keywords" meta.keywordsubtype="org" meta.entityname="Motilal Oswal" meta.hostid="269" meta.entityid="Motilal Oswal">Motilal Oswal</keyword> suggests that the loan-to-deposit (LD) ratio is likely to subside on its own in the coming months. The debate on loan-to-deposit ratio (LD), particularly concerning sluggish <keyword id="19998084" type="General" weightage="20" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> and potential risks to <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">financial stability</keyword> is raised by even the finance minister and the <keyword id="20151998" type="General" weightage="20" keywordseo="RBI-governor" source="keywords">RBI governor</keyword>. However, the report notes that on closer examination, the situation may not be as alarming as it seems. As of 9th August, 2024 the Indian <keyword id="19964544" type="General" weightage="20" keywordseo="banking-sector" source="keywords">banking sector</keyword>'s loan-to-deposit (LD) ratio stood at 77.2 %, which is slightly below its recent peak of 78.2 % on 22nd March 2024, and its all-time high of 78.8 % in September 2013. The report stated that typically a rising LD ratio is indicative of a tightness in the banking sector, potentially indicating overheating. A lower LD indicates that the bank is aggressive in its credit disbursement practises, which could be risky. It highlighted that an analysis of the sector's transactions with the Reserve Bank of India (RBI) through the liquidity adjustment facility (LAF), along with recent trends in the weighted average call rate (WACR), suggests that the current rise in the LD ratio does not indicate tightness, which is why there is no immediate cause of concern. In fact, the report added that the concern over weak deposit growth may be overstated. Historical data show that bank deposits grew at an average rate of 9.5 % during the pre-COVID period (January 2015 to February 2020) and 10.4 % in the post-COVID period (March 2020 to August 2024). Earlier, Finance Minister Nirmala Sitharaman also urged state-run banks to enhance deposit mobilization through attractive offers and focusing on Tier-2 and Tier-3 cities. Loan-to-deposit ratio pegs the total deposits received by the bank against the loans it has offered. It helps in understanding how liquid the bank is. The loan-to-deposit ratio (LDR) is a financial metric that compares a bank's total loans to its total deposits. It's used to assess a bank's liquidity and credit risk, and to inform lending and deposit-taking decisions The report said while the exact measures are unclear, the deposit growth could potentially be increased by making other asset classes less attractive through taxation or interest rates, or by boosting fiscal spending to increase net credit to the government. In its forecast, the report noted that private banks will witness a moderation in their <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>, while public sector banks will maintain a healthy credit growth rate. "Our analysis suggests that deposit growth could be raised by either making other asset classes unattractive (through taxation and/or interest rate) or increasing the growth in net credit to the government by pushing fiscal spending higher" the report added. Alternatively, policymakers might consider curtailing loan growth to lower the LD ratio. However, this could slow deposit growth, particularly if corporate credit growth remains weak. Encouraging savers to shift investments from other assets to bank deposits could also be an option, but this carries risks of overreach and potential damage to economic confidence. Das had also flagged the excessive growth, or froth developing in the personal loan space. Notably, while credit growth in unsecured personal loans like credit cards continues to decline, it remains elevated at 23.3% as of June 2024. However, this is a significant reduction from 34.2% witnessed in November 2023. As fiscal spending increases, bank credit to the government is likely to grow, which should elevate deposits and broad money supply. The report said "However, the extent of foreign capital inflows and the RBI's policy for managing these inflows remain uncertain". Last month, RBI governor Shaktikanta Das had also addressed this issue in the 50th meeting of MPC (Monetary Policy Committee). Per him, deposit mobilisation has been lagging credit growth for some time now. This may potentially expose the system to structural liquidity issues. "While there could be a debate regarding ‘deposits funding loans’ vis-à-vis ‘loans funding deposits’, the current regulatory concern stems from the fact that there could be structural changes happening which banks need to recognise and, accordingly, devise their strategies. Households and consumers who traditionally leaned on banks for parking or investing their savings are increasingly turning to capital markets and other financial intermediaries", Das said. Per him, while bank deposits continue to remain dominant as a percentage of financial assets owned by households, their share has been declining consistently, since households are now increasingly allocating their savings to mutual funds, insurance funds, pension funds and other avenues.

Loan-to-deposit ratio will subside on its own in coming months, notes Motilal Oswal report

The bad assets or gross <keyword id="19964545" type="General" weightage="20" keywordseo="NPAs" source="keywords">NPAs</keyword> of commercial <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> fell to a 12-year low of 2.8% in March 2024 and may go down further to 2.5% by the end of the current fiscal, said the <keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="269" meta.entityid="RBI">RBI</keyword>'s <keyword id="678734" type="General" weightage="20" keywordseo="Financial-Stability-Report" source="Orion">Financial Stability Report</keyword> (FSR) released on Thursday. <keyword id="19982351" type="General" weightage="20" keywordseo="Scheduled-Commercial-Banks" source="keywords" meta.keywordsubtype="org" meta.entityname="Scheduled Commercial Banks" meta.hostid="269" meta.entityid="Scheduled Commercial Banks">Scheduled Commercial Banks</keyword>' (SCBs) gross <keyword id="6401657" type="General" weightage="20" keywordseo="non-performing-assets" source="Orion">non-performing assets</keyword> (<keyword id="19982350" type="General" weightage="20" keywordseo="GNPA" source="keywords">GNPA</keyword>) ratio fell to 2.8%, and the net non-performing assets (NNPA) ratio to 0.6% at the end of March 2024. "The asset quality of SCBs recorded sustained improvement, and their GNPA ratio moderated to a 12-year low in March 2024. Their NNPA ratio too improved to a record low," said the June FSR. Among bank groups, public sector banks (<keyword id="20012926" type="General" weightage="20" keywordseo="PSBs" source="keywords">PSBs</keyword>) recorded a substantial reduction (76 bps) in their GNPA ratio during H2 2023-24. While the GNPA stock decreased across all bank groups, active and deep provisioning by PSBs and foreign banks (FBs) resulted in an improved provisioning coverage ratio (PCR) in March 2024, the report said. The half-yearly slippage ratio (viz, new NPA accretions as a share of standard advances) decreased across bank groups. Though the amount of write-offs declined during the year, the write-off ratio remained almost at the same level a year ago due to a reduction in GNPA stock, the FSR said. Overall, it added the sustained reduction in the GNPA ratio since March 2020 has been primarily due to a persistent fall in new NPA accretions and increased write-offs. The RBI said macro stress tests are performed to assess the resilience of SCBs' balance sheets to unforeseen shocks emanating from the macroeconomic environment. These tests attempt to assess capital ratios over a one-year horizon under a baseline and two adverse (medium and severe) scenarios. "The GNPA ratio of all SCBs may improve to 2.5% by March 2025 under the baseline scenario," the report said. However, if the macroeconomic environment worsens to a severe stress scenario, the ratio may rise to 3.4%. Under the severe stress scenario, the GNPA ratios of PSBs may increase from 3.7% in March 2024 to 4.1% in March 2025, whereas it may go up from 1.8% to 2.8% for private sector banks and from 1.2% to 1.3% for FBs. The <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">Financial Stability</keyword> Report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. The report further said deposit mobilisation by SCBs gathered pace during 2023-24, with a large portion of new accretions in the form of term deposits. "Interest rates became more attractive as banks stepped up efforts to mobilise funds to match the rapid rise in credit demand. Growth in current account and savings account (CASA) accelerated across all bank groups," the RBI said. According to the report, bank credit accelerated during H2 2023-24 among public sector banks (PSBs) and foreign banks (FBs), whereas it moderated in respect of private sector banks (PVBs). The share of credit to the services sector and personal loans in the aggregate loan portfolio increased. Personal loans accounted for over half of PVBs' <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>. The expansion in personal loans was broad-based, led by housing loans and followed by other personal loans.

Banks' gross NPAs at 12-yr low, may fall further to 2.5%: RBI report

New Delhi, The government might look at enhancing the scrutiny of certain class of corporates, including in terms of <keyword id="19910870" type="General" weightage="20" keywordseo="kyc" source="keywords">KYC</keyword> requirements, as efforts continue to weed out unscrupulous elements and curb possible misdoings, according to a senior official. The matters related to KYC (Know Your Customer), including a simplified and uniform system, are still under discussion, and a committee headed by the finance secretary is looking into various aspects. The senior official on Monday said that various aspects related to having a uniform KYC are being discussed and in the case of the corporate affairs ministry, Permanent Account Number (<keyword id="19939397" type="General" weightage="20" keywordseo="pan" source="keywords">PAN</keyword>) is being used for KYC requirements. The ministry is implementing the companies law and <keyword id="20735098" type="General" weightage="20" keywordseo="limited-liability-partnership" source="keywords">Limited Liability Partnership</keyword> (LLP) Act, among other legislations. Further, the official said enhanced KYC requirements might be explored for certain class of corporates. As many as 26,28,865 companies were registered in the country as on January 31, 2024, and out of the total, 16,65,438 companies, or 63 per cent were active, as per the latest official data. According to the data, a total number of 3,16,402 LLPs were active at the end of January this year. Meanwhile, the ministry-appointed panel is discussing possibilities of having a stricter regulatory regime for startups against the backdrop of instances of corporate governance concerns at some of the entities. The Company Law Committee (CLC), which was set up by the ministry in September 2019, is yet to firm its views and a final decision will be taken after receiving the panel's recommendations, the official said. Over a period of time, the ministry has been clamping down on entities, suspected of carrying out illegal activities. Last week, the <keyword id="20584362" type="General" weightage="20" keywordseo="financial-stability-and-development-council" source="keywords">Financial Stability and Development Council</keyword> (FSDC), chaired by Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword>, discussed strengthening inter-regulatory coordination in the financial sector to support inclusive economic growth. The council also deliberated on prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification and digitalisation of the KYC process, among others.

Govt may look at enhanced KYC requirements for certain class of corporates

Stock <keyword id="20345915" type="General" weightage="20" keywordseo="exchanges" source="keywords">exchanges</keyword> and <keyword id="20710434" type="General" weightage="20" keywordseo="brokers" source="keywords">brokers</keyword>, catering to retail traders, could be hit hard by the regulator <keyword id="19901201" type="General" weightage="100" keywordseo="Sebi" source="keywords">SEBI</keyword>'s proposed measures for Futures &amp; Options (F&amp;O) <keyword id="22748189" type="General" weightage="20" keywordseo="trading-regulations" source="keywords">trading regulations</keyword>, with market volumes slumping 30-40 %, according to reports. If these measures are implemented, the number of investors could decrease, it added. Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers. SEBI, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin. SEBI stated that these measures are aimed at enhancing <keyword id="20775670" type="General" weightage="20" keywordseo="investor-protection" source="keywords">investor protection</keyword> and promoting <keyword id="20813757" type="General" weightage="20" keywordseo="market-stability" source="keywords">market stability</keyword> in derivative markets. According to a report by Jefferies, SEBI's proposed measures to reduce the number of weekly option contracts from 18 to 6 could impact around 35% of industry premiums. However, if trading shifts to the remaining contracts, the overall impact can be reduced to 20-25%. Among its 7 proposed measures, IIFL Securities see the highest impact from the withdrawal of <keyword id="22353333" type="General" weightage="20" keywordseo="weekly-options" source="keywords">weekly options</keyword> (only 1 per exchange allowed) as index Options account for 98% of the volumes. IIFL Securities expects the National Stock Exchange (NSE) to be more affected than the BSE because 60 % of NSE's revenue comes from options trading, compared to 40% for BSE. It estimates that by the financial year 2026, NSE's earnings could be reduced by 25-30% while BSE's earnings could drop by 15-18%. Jefferies also believes that the removal of Bankex weekly contract can impact BSE's earnings per share (EPS) by 7-9% over FY25-27. It further said that BSE might see a small decline in earnings, but if trading activity shifts from discontinued products, it could offset the impact or even lead to earnings growth. "We don't see any impact on MCX from these regulations. Within the value chain, discount brokers are likely to be more impacted than traditional full-service brokers given the former's dependence on retail investors," IIFL Securities said. Jefferies believes that clearing members like Nuvama, which caters to institutional players High-Frequency Traders (HFTs), and Foreign Portfolio Investors (FPIs) are less impacted. Rationalizing weekly options to only one benchmark index per exchange will significantly affect the NSE because it currently has four weekly index expiries, with "Bank Nifty" being the most important, contributing to 50 % of its options volume. The change could reduce NSE's overall trading volumes by 30-35 %, IIFL Securities said. On the other hand, BSE is expected to be less affected since it only has two contracts, with Sensex making up 85 % of its volumes in FY24. Even if "Bankex" contributes 30% by FY26, the impact on BSE's volumes is expected to be smaller compared to NSE, it said. Additionally, with just two expiries, BSE might gain market share and experience higher trading volumes, resulting in an estimated 20 % reduction in its overall volumes, it added. Jefferies said that SEBI's proposed measure of increasing lot sizes by 3-4 times over six months could lead to higher costs for retail traders, potentially reducing their participation in the market. The proposed margin increase for options sellers close to expiry could reduce leverage and profitability, especially for retail traders with limited funds. "Finally other measures like increasing ELM (extreme loss margin) around expiry, and withdrawal of calendar spread margin on expiry will increase the margin requirements and thereby could impact the liquidity. Based on our initial estimates we expect a 30-40 % impact on market volume," IIFL Securities said. SEBI Chief Madhabi Puri Buch recently mentioned that households are losing up to Rs 60,000 crore a year in the problematic futures and options segment. Earlier, SEBI research showed retail traders lose money in nine out of 10 trades in the F&amp;O segment Last month, the government in the Union Budget raised the securities transaction tax (STT) on both futures and options trade from October 1 to allay concerns about hyperactive interest in the derivative segment. Before that, the Economic Survey flagged concerns over rising retail investors' interest in derivative trading. The survey stated that speculative trade has no place in a developing country. It also pointed out that the sharp increase in retail investor participation in F&amp;O trading is likely driven by humans' gambling instincts.

SEBI proposed F&O norms to hit exchanges, brokers, says reports

<ul><li>Various <keyword id="19899640" type="General" weightage="100" keywordseo="AI" source="keywords">AI</keyword> companies have been accused of <keyword id="22183488" type="General" weightage="20" keywordseo="data-scraping" source="keywords">data scraping</keyword> in the past</li><li><keyword id="20198281" type="General" weightage="20" keywordseo="Reddit" source="keywords" meta.keywordsubtype="org" meta.entityname="Reddit" meta.hostid="261" meta.entityid="Reddit">Reddit</keyword> CEO recently asked <keyword id="19895622" type="General" weightage="20" keywordseo="Microsoft" source="keywords" meta.keywordsubtype="org" meta.entityname="Microsoft" meta.hostid="261" meta.entityid="Microsoft">Microsoft</keyword> to pay for using its website content</li><li>Midjourney announced a ban on <keyword id="20219342" type="General" weightage="20" keywordseo="Stability-AI" source="keywords" meta.keywordsubtype="org" meta.entityname="Stability AI" meta.hostid="261" meta.entityid="Stability AI">Stability AI</keyword> employees in March this year</li></ul> <keyword id="19918823" type="General" weightage="20" keywordseo="OpenAI" source="keywords" meta.keywordsubtype="org" meta.entityname="OpenAI" meta.hostid="261" meta.entityid="OpenAI">OpenAI</keyword> launched <keyword id="19918826" type="General" weightage="20" keywordseo="ChatGPT" source="keywords">ChatGPT</keyword> in November 2022 and the world hasn’t been the same since then. From writing content and composing poetry to helping with research and writing code, the AI chatbot can do things that were earlier considered to be exclusive to human beings. After ChatGPT’s launch, several other companies including Microsoft and Google also launched their own AI chatbots. Today, chatbots from various companies are being widely used by people for various purposes. But do you know where the chatbots get their information from? One source is the data you enter while talking to the chatbot (same is mentioned in the form of disclaimers and you can even opt out of them). The other is data from online sources which is mostly the content created by other individuals and companies available publicly. And this has been a source of debate for a long time. Microsoft AI division CEO Mustafa Suleyman was in the news last month for saying that anyone can use the data available on the internet. However, Reddit CEO opposes this viewpoint and was recently making headlines for asking Microsoft to pay for using the data on Reddit. In the last few months, there have been various reports of content creators, actors, and companies taking action against AI companies for scraping their data to train their own AI models. Let us take a look at some of them. <h2>1. Microsoft</h2>Last week, Reddit CEO Steve Huffman made headlines for demanding that companies like Microsoft should pay for using the site’s data to train their AI models. A report in The Verge quoted Huffman saying that without such agreements, Reddit has no control over how its data is used or displayed, leading them to block companies unwilling to negotiate. He specifically called out Microsoft, <keyword id="20837420" type="General" weightage="20" keywordseo="Anthropic" source="keywords" meta.keywordsubtype="org" meta.entityname="Anthropic" meta.hostid="261" meta.entityid="Anthropic">Anthropic</keyword>, and Perplexity for refusing to come to terms. The Verge report added that Huffman also accused Microsoft of using Reddit’s data to train its AI and summarise content in Bing results without informing the platform. He also mentioned that Reddit’s data has been sold through the Bing API to other search engines. Referencing Microsoft AI CEO Mustafa Suleyman’s comment, Huffman said that Microsoft, Anthropic, and Perplexity seem to believe all internet content is free for their use. <h2>2. Stability AI</h2>In March this year, Midjourney announced a ban on Stability AI employees from using its service, accusing them of causing a system outage by scraping Midjourney's data. On March 2nd, Midjourney reported on its Discord server that a prolonged server outage prevented generated images from displaying in user galleries, attributing the issue to "botnet-like activity from paid accounts" linked to Stability AI employees. According to a report in The Verge, during a business update call on March 6th, Midjourney claimed the outage occurred because "someone at Stability AI was trying to grab all the prompt and image pairs in the middle of the night on Saturday." The company traced multiple paid accounts back to a member of Stability AI's data team. Consequently, Midjourney indefinitely banned all Stability AI employees from using its service and introduced a new policy to ban employees from any company involved in "aggressive automation" or causing service outages. <h2>3. Runway</h2>Google-backed AI startup Runway was in the limelight last month for accusations of scraping thousands of YouTube videos without authorisation to train its AI video creation model. The allegations came to light through a leaked internal spreadsheet obtained by 404 Media. The spreadsheet, allegedly shared by a former Runway employee, outlined plans to categorise and tag content from over 3,900 YouTube channels, including big names like Disney, Netflix, and well-known YouTubers such as Casey Neistat and Marques Brownlee (MKBHD). This data was purportedly used to develop Runway's Gen-3 AI video creation model, previously known as "Jupiter." Runway did not verify the authenticity of the spreadsheet. The company had earlier claimed it used "curated, internal datasets" for training but did not disclose further details. Prominent YouTubers like MKBHD and MrWhoseTheBoss voiced their concerns on social media about the whole incident. MKBHD disclosed that over 1,600 of his videos had been scraped, while MrWhoseTheBoss described the practice as "scary," revealing that 1,600 of his videos were also used. <h2>4. OpenAI</h2>In May this year, Hollywood actress <keyword id="20353350" type="General" weightage="20" keywordseo="Scarlett-Johansson" source="keywords">Scarlett Johansson</keyword> sued OpenAI for using her voice likeness without asking for permission. OpenAI, on the other hand, had claimed that the voice in question belonged to other actors and not Johansson. Later that month, it was revealed that ChatGPT’s Sky voice (the voice in question) was being taken down. Johansson had also said that OpenAI CEO Sam Altman had approached her twice for allowing them to clone her voice for the AI chatbot. However, she had declined the offer. Meanwhile Altman, in an interview with NBC News, said that Sky was not based on Johansson's voice. He explained that a professional actor recorded the voice, but the actor's identity cannot be revealed for privacy reasons. "We cast the voice actor behind Sky’s voice before any outreach to Ms. Johansson. Out of respect for Ms. Johansson, we have paused using Sky’s voice in our products. We are sorry to Ms. Johansson that we didn’t communicate better," he had said. <h2>5. Anthropic</h2>American AI startup Anthropic also found itself in the middle of a controversy last month. The startup faced accusations of aggressively scraping data from various websites to train its systems. A report in Financial Times said that Matt Barrie, CEO of Freelancer.com, claimed that Anthropic was "the most aggressive scraper by far" of his freelancing portal, which sees millions of daily visits. Other web publishers echoed Barrie’s concerns, stating that Anthropic's bots were inundating their sites and ignoring requests to stop collecting content for training purposes. Freelancer.com recorded 3.5 million visits from an Anthropic-linked web crawler within just four hours, according to data shared with the Financial Times. Barrie noted that this volume was "probably about five times the number two" AI crawler. Despite attempts to block access using standard web protocols, visits from Anthropic's bots continued to rise, prompting Barrie to block traffic from Anthropic’s internet addresses entirely. Anthropic responded by stating that it was investigating the issue and aimed to respect publishers' requests, striving not to be "intrusive or disruptive." The Financial Times also quoted Kyle Wiens, CEO of iFixit.com, who reported receiving 1 million hits from Anthropic bots in 24 hours. "We have a load of alarms [for high traffic], people get woken up at 3am. This set off every alarm we have," Wiens said. SEE ALSO: <a href="https://www.businessinsider.in/artificial-intelligence/news/sam-altman-and-generative-ai-cant-be-trusted-says-leading-expert/articleshow/112274629.cms" data-type="tilCustomLink" target="_blank">Sam Altman and generative AI can't be trusted, says leading expert</a> <a href="https://www.businessinsider.in/artificial-intelligence/news/elon-musk-is-having-another-go-at-suing-openai-and-sam-altman-heres-why/articleshow/112293418.cms" data-type="tilCustomLink" target="_blank">Elon Musk is having another go at suing OpenAI and Sam Altman — here's why</a>

‘Too smart to steal’: AI, made to help, faces backlash for data scraping

<div type="image" title="SBI report says inflation will remain around 5 per cent this fiscal" agency="ANI" msid="112275933" hostid="261" caption="&amp;lt;p&amp;gt;SBI report says inflation will remain around 5 per cent this fiscal &amp;lt;/p&amp;gt;"></div>The Consumer Price <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">Inflation</keyword> in India is expected to remain around 5 per cent in the financial year 2024-25 except for September and October month, according to a research report by <keyword id="13222" type="General" weightage="20" keywordseo="sbi" source="Orion">SBI</keyword>. The report also noted that the inflation outlook in India remains a critical focus for the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (RBI). Recent data indicates that the <keyword id="19999655" type="General" weightage="20" keywordseo="Consumer-Price-Index" source="keywords">Consumer Price Index</keyword> (CPI) inflation rose to 5.08 per cent in June 2024, driven primarily by higher food and beverage prices. "CPI inflation is expected to remain below or close to 5.0 per cent in the remaining months, except for Sep'24 and Oct'24" said the report. The report also added that the monsoon season plays an important role in shaping food prices, and while the current monsoon has shown a satisfactory surplus, excess rainfall could lead to crop losses, adversely affecting food inflation. The RBI's ability to manage inflation expectations is crucial, especially as it navigates the delicate balance between supporting <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword> and maintaining <keyword id="19960158" type="General" weightage="20" keywordseo="price-stability" source="keywords">price stability</keyword>. "With monsoon progressing satisfactorily with 2 per cent surplus till date and progress of area coverage under Kharif crops showing 2.9 per cent yoy, we expect inflation to remain within RBI target in FY25. However, with La Nina getting precedence, excess rainfalls could result in crop loss and thus a negative impact on food prices" the report added. In response to the evolving economic landscape, the report mentioned that the RBI is likely to continue its stance of withdrawing accommodation. This approach aims to address inflationary pressures while ensuring that the economy remains on a growth trajectory. However, the central bank faces challenges in policy transmission, as deposit rates have shown downward rigidity despite a declining weighted average lending rate (WALR). This situation complicates the RBI's efforts to implement effective monetary policy. "Even though the Banks are chasing deposits to fund the incremental credit growth, RBI recent report suggests, the weighted average lending rate (WALR) on fresh rupee loan decreased by 11 bps from the beginning of the year (i.e. from 9.43 in January'24 to 9.32 in June'24)" the report noted. Looking ahead, the RBI's decisions will be influenced by both domestic and global economic conditions. The potential for a recession in the US and geopolitical tensions could impact inflation dynamics in India. As such, the RBI's monetary policy will need to remain flexible and responsive to these external factors while striving to achieve its inflation targets and support sustainable economic growth. (ANI)

SBI report says inflation will remain around 5 per cent this fiscal

Despite the recent increase in <keyword id="87554" type="General" weightage="20" keywordseo="financial-liabilities" source="Orion">financial liabilities</keyword>, <keyword id="1912236" type="General" weightage="20" keywordseo="household-debt" source="Orion">household debt</keyword> in India is much lower than in other emerging market economies (EME) and, therefore, the risk of defaults due to greater exposure of higher mortgage payments and floating rate interest is limited in India, according to the Reserve Bank of India's (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) <keyword id="131660" type="General" weightage="20" keywordseo="financial-stability" source="Orion">financial stability</keyword> report. "The current level of household debt in India does not pose systemic concern," the report observes. <keyword id="20033520" type="General" weightage="20" keywordseo="gross-household-financial-savings" source="Orion">Gross household financial savings</keyword>, which had surged to 15.4 per cent of GDP in 2020-21 (pandemic peak year), supported by large precautionary savings, fell to 11.1 per cent in 2021-22 and further to 10.9 per cent in 2022-23, reverting to its pre-pandemic trend (viz., an average of 11.0 per cent during 2011- 12 to 2019-20), the report states. In terms of absolute levels, gross household financial savings expanded by 13.9 per cent year-on-year during 2022-23. Household net financial savings (HNFS), however, fell sharply to 5.1 per cent of GDP in 2022-23 from 11.5 per cent in 2020-21, well below its long-run annual average of 7.0-7.5 per cent. The fall in HNFS was driven by a rapid rise in financial liabilities from 3.8 per cent of GDP in 2021-22 to 5.8 per cent in 2022-23 even as financial assets moderated only marginally to 10.9 per cent in 2022-23 from 11.1 per cent in 2021-22, according to the RBI report. The increase in financial liabilities was driven by a steep rise in borrowings from financial institutions, with a large part in physical assets creation (mortgages and vehicles). Thus, the overall savings of households may still hold steady with a compositional shift in favour of physical savings. This would directly add to gross capital formation, supporting an upturn in the private investment cycle and, eventually, the prospects for growth, the report points out. Moreover, recent data show that HNFS rose to 7.0 per cent of GDP in Q4:2022-23 from 4.0 per cent of GDP in the previous quarter, indicating normalisation of HNFS towards the pre-pandemic long-term trend. Household debt moderated to 37.6 per cent of GDP in March 2023 from its peak level of 39.2 per cent in March 2021, the report added.

Household debt in India does not pose systemic concern: RBI

<ul class="summary-list"><li>The <a target="_blank" class="" href="https://www.businessinsider.com/florida-residents-moving-leaving-climate-change-refugees-hurricanes-flood-2023-2">climate crisis</a> is an often-hidden financial risk when buying a house.</li><li>A few online tools can help you assess that risk and possible costs by address.</li></ul>If you're <a target="_blank" class="" href="https://www.businessinsider.com/florida-man-refused-leave-hurricane-proof-home-basically-unharmed-milton-2024-10">shopping for a house</a>, you're probably thinking ahead and planning for your future.Here's the thing, though: By the end of a <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/will-mortgage-rates-go-down-this-year">30-year mortgage</a>, you'll be living on a pretty different planet.Even if companies and governments across the world make some drastic changes — and that's a big "if" — humanity's carbon emissions have already locked in some additional warming for decades to come. That means more intense and sometimes more frequent floods, wildfires, hurricanes, winter storms, and other forms of <a target="_blank" class="" href="https://www.businessinsider.com/housing-market-outlook-analysis-prices-rising-extreme-weather-risk-jpmorgan-2024-2">extreme weather</a>.You and your house could suffer everything from headaches and declining <a target="_blank" class="" href="https://www.businessinsider.com/housing-market-higher-home-prices-climate-change-air-quality-impact-2024-2">property value</a> to giant bills and life-threatening events.That's why it's important to take stock of the <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-housing-market-prediction-sun-belt-climate-change-zelman-2024-7">climate risks your home faces</a> in the coming decades.It's impossible to know exactly what will happen, but a few <a target="_blank" class="" href="https://www.businessinsider.com/tool-determines-home-climate-risk-heat-wind-bad-air-2024-3">online tools</a> can give you an idea of the risks — as well as the costs you could incur and what you can do about it — depending on which house you buy.<h2 id="f72716a3-6428-4f34-94f8-2f3ebf4d7693">Learn about the possible damages</h2>The <a target="_blank" class="" href="https://www.businessinsider.com/zillow-gone-wild-weird-unique-houses-homes-hot-homebuying-selling-2024-7">most popular real-estate website</a> in the US, Zillow, has a new feature to peer into the potential climate future of each listing. The new "climate risks" tool shows <a target="_blank" class="" href="https://www.businessinsider.com/map-shows-united-states-extreme-heat-belt-study-2022-8">how many days of extreme heat</a> and unhealthy air quality a property is expected to see over the next 30 years, assuming humanity is on track to stabilize climate change by 2100. The tool also shows the likelihood of more destructive events: floods, wildfires, and windstorms.<div type="image" title="group of people watch wildfire burning home in the hills with palm trees" height="1771" width="2500" msid="114374425" hostid="261" sizebytes="281278"></div>These assessments come from First Street, a former nonprofit that became a for-profit company this year, which uses computer models to quantify certain weather and climate risks for individual properties. First Street says it incorporates a <a target="_blank" class="" href="https://www.businessinsider.com/maui-wildfires-lahaina-wooden-house-spared-among-rubble-2023-8">building's specific structural characteristics</a>, as well as local infrastructure like roads and utilities."If you don't take stock of the climate risk specifically, you could be in over your head," Jeremy Porter, the head of climate implications research at First Street, told Business Insider.For example, if the cost of flood or wildfire insurance spikes as it already has in places like <a target="_blank" class="" href="https://www.businessinsider.com/homeowners-california-florida-insurance-issues-natural-disasters-wildfires-hurricanes-2023-10">Florida and California</a>, "all of a sudden your household budget doesn't make any sense for the property that you ended up buying," he said.The new Zillow tool also makes recommendations about insurance based on First Street's analysis.To dive even deeper, you can go to First Street's website and get a free trial of its paid service, which shows ballpark estimates of how much a flood or fire could cost you, expected cooling costs, and projections of <a target="_blank" class="" href="https://www.businessinsider.com/florida-insurance-hurricanes-extreme-weather-relocate-to-ocala-2023-10">insurance prices</a>. You can also toggle certain renovations to see how they impact those costs.<h2 id="0eef8ad3-480e-4072-aadf-cb64222742c5">Remember those estimates aren't a crystal ball</h2>Climate-science experts outside the company have some reservations about First Street's flood and wildfire estimates, though.Michael Wara, a senior research scholar at the Stanford Woods Institute for the Environment, told <a target="_blank" class="" href="https://heatmap.news/guides/zillow-climate-risk-flooding-fire">Heatmap News</a> to take First Street's calculations with "a lot of grains of salt."Heatmap reported that First Street probably underestimates <a target="_blank" class="" href="https://www.businessinsider.com/photos-wildfire-burns-multimillion-dollar-homes-in-california-orange-county-2022-5">wildfire risk</a> in wildfire-prone areas and that flood risk is very difficult to accurately model. You can try to cross-check flood risk with other sources like seeing if the town or city has flood maps available."Everything that we're offering are probabilistic risk estimates," Porter said."I think that just in general, the models give you a pretty good indication of which properties are riskier than other properties," he added.<h2 id="ea2c710b-3a7a-45fe-b58f-971596d4b019">Then check local building codes…</h2>Once you know the climate risks, you can assess <a target="_blank" class="" href="https://www.businessinsider.com/photos-why-some-homes-survive-hurricanes-lessons-homeowners-2024-10">how well a property is built</a> to withstand them.<div type="image" title="slumping one-story grey and wood panel house with panels ripped away next to a standing yellow house" height="1500" width="2249" msid="114374424" hostid="261" sizebytes="407800"></div>A good indicator of that is the local building code and whether the house is built to its standards. The Federal Alliance for Safe Homes has a tool for checking that at <a target="_blank" href="http://inspecttoprotect.org">inspecttoprotect.org</a>.Not only does FLASH rate the local building code, but the tool also shows information about the area's past <a target="_blank" class="" href="https://www.businessinsider.com/who-how-profit-natural-disasters-hurricanes-wildfires-storms-investors-2023-8">natural disasters</a> and suggests upgrades.<h2 id="03112be6-cab7-49c5-9eed-55cc34037179">... and consider renovations</h2>In the FLASH tool, you can select the year a house was built to see what <a target="_blank" class="" href="https://www.businessinsider.com/tiny-home-renovation-old-abandoned-cottage-scotland-before-after-photos-2022-7">renovations</a> would strengthen it against different natural disasters. Each upgrade has a cost and impact rating.Taking matters into your own hands could make a big difference because, <a target="_blank" class="" href="https://www.fema.gov/emergency-managers/risk-management/building-science/bcat#:~:text=FEMA%20tracks%20the%20building%20code,simply%20by%20its%20acronym%2C%20BCAT.">according</a> to the Federal Emergency Management Agency, only about one-third of US jurisdictions have adopted up-to-date codes to match their natural hazards.Even then, building codes are often designed to protect the lives of people inside the house, but not necessarily to prevent <a target="_blank" class="" href="https://www.businessinsider.com/florida-homeowner-milton-tearing-through-neighborhood-cant-sleep-2024-10">expensive property damage</a>."You got to at least have a good building code, but that's a starting point. It's not your gold standard, it's your minimum," Leslie Chapman-Henderson, FLASH's president and CEO, told BI.In some cases, renovations and upgrades can even help lower your insurance costs.

Before buying a home, check this hidden financial risk

Mumbai, <keyword id="192432" type="General" weightage="20" keywordseo="reserve-bank-governor" source="Orion">Reserve Bank Governor</keyword> <keyword id="6359111" type="General" weightage="20" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> on Thursday said India is one of the fastest growing major economies in the world with a rising potential growth profile, and stressed that the central bank remains committed to act early and decisively to prevent any build-up of risks. In his foreword to the <keyword id="19899808" type="General" weightage="80" keywordseo="rbi" source="keywords">RBI</keyword>'s 28th issue of the <keyword id="19984045" type="General" weightage="50" keywordseo="financial-stability-report" source="keywords">Financial Stability Report</keyword> (FSR), Das said achieving durable price stability, ensuring medium-term debt sustainability, further strengthening financial sector resilience, creating new growth opportunities and promoting inclusive and green growth remain key policy priorities. The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. Observing that the global economy is facing multiple challenges, Das said the Indian economy exhibits macroeconomic resilience, with a robust financial system that is supporting its growth dynamics. "We remain alert and committed to act early and decisively to prevent any build-up of risks," he said. He also said that recent macroprudential measures taken by the central bank to curb lenders' exuberance towards certain segments of retail loans underline its commitment to preserve financial stability without compromising availability of funds for productive requirements of the economy. "India is one of the fastest growing major economies in the world with a rising potential growth profile," the governor said, and added the sharp rebound in growth is underpinned by sound macroeconomic fundamentals, robust domestic demand and prudent public policies. Even as India confronts global headwinds and emerging challenges from technological disruptions, cyber risks and climate change, he said RBI's endeavour will be to continue to fortify the financial system, promote responsible innovation and invigorate inclusive growth. The <keyword id="19922074" type="General" weightage="80" keywordseo="reserve-bank" source="keywords">Reserve Bank</keyword> and the other financial regulators remain invested in preserving financial stability and fostering a financial system that is resilient to shocks and supportive of growth, he added.

RBI to act early to prevent any risk to India's fastest growth potential: Guv Shaktikanta Das

<ul class="summary-list"><li>Tareasa M. Johnson, known as "Reesa Teesa," went viral with the TikTok series, "Who TF Did I Marry."</li><li>She is now signed to the talent agency CAA and ABC is making a show based on her story.</li></ul>Dressed in a crisp crimson blouse, Tareasa M. Johnson takes my Zoom call in the law enforcement office she works from, a star-spangled banner in the corner of the screen.Like millions of people, I first encountered Johnson seven months ago on my phone screen, hooked to her 50-part TikTok series which she titled <a target="_blank" href="https://www.businessinsider.com/who-tf-did-i-marry-tiktok-lesson-ignoring-red-flags-2024-2">"Who TF Did I Marry?"</a>For the uninitiated, Johnson (username: Reesa Teesa) became an instant TikTok sensation when she shared the story of finding out that her husband wasn't who she thought he was. From the driver's seat of her car, she told followers that she had just learned he wasn't a VP; he was a forklift driver. He had multiple forged Social Security numbers, and a previous charge of impersonating a police officer.The posts — which amounted to eight hours total — changed her life.The series and her ongoing content creation now account for "about 70%" of her income, Johnson told Business Insider.Since the series blew up in February, Johnson said she's stopped going to grocery stores because one person would recognize her and it would quickly snowball into a frenzy. She's appeared on "Good Morning America" and the "Tamron Hall Show." She's <a target="_blank" href="https://www.forbes.com/sites/conormurray/2024/03/05/reesa-teesa-of-who-tf-did-i-marry-50-part-tiktok-series-signs-with-creative-arts-agency-heres-what-led-to-that/">signed with CAA</a>, a top creative agency, and sold her story as an upcoming TV series to ABC. Later this week, she'll speak at the <a target="_blank" href="https://thebodcon.com/conference2024">2024 BodCon Conference</a> about how to date with confidence in the digital age.Still, she kept the same executive assistant role she had before she uploaded those fateful TikToks."That's the one thing that I am still holding onto, my 8-to-5 job," she said. "It's normal. I needed something to just keep me grounded." Beyond providing her with a familiar routine and coworkers as she skyrocketed to overnight fame, it also gives her a deep sense of security."It's important that I don't rely on social media to pay my bills," she said. "To me, that's not wisdom." While the financial success of "Who TF Did I Marry" allowed her to feel like she can "breathe," she said she's strategic when it comes to spending money.<h2 id="f72f6a3b-a3fa-47e5-806f-57e16721a482">Law enforcement by day, content creation at night and on weekends</h2>Johnson said her current job gives her the freedom to travel to events when she needs to, which she said has happened every month since the series went viral.She works normal full-time hours at her desk job in Marietta, Georgia and mostly does "the Reesa stuff," like posting brand deals, when she gets home at night a few times a week. "I try my best to manage my time properly," she said. "But yeah, it is crazy. I know it's crazy."She's also the executive producer of the TV series she just sold based on her story. <a target="_blank" href="https://www.businessinsider.com/natasha-rothwell-how-to-die-alone-white-lotus-interview-2024-9">"The White Lotus" actor Natasha Rothwell</a> is developing the show with her and will star as Johnson.<div type="image" title="Natasha Rothwell attends the &quot;Here Lies Love&quot; Broadway Opening Night at Broadway Theatre." height="1500" width="2000" msid="114791831" hostid="261" sizebytes="377656"></div>Johnson said she'll be involved in the writer's room, giving feedback on the adaptation's accuracy. "This is my baby and I'm hands-on with it," she said.<h2 id="5515d52b-ce85-480e-b799-ef13be43d06d">She bought a 'modest' house</h2>A pivotal part of "Who TF Did I Marry" was that Johnson said her ex, who she nicknamed "Legion," told her <a target="_blank" href="https://www.businessinsider.com/financial-lessons-learned-from-who-tf-did-i-marry-2024-2">he paid $700,000 in cash for a house</a> they wanted. Johnson later learned that he could not show proof of funds to the sellers, who rescinded the offer.After the series blew up, and lucrative business deals started pouring in, Johnson said her first big goal was to finally be a homeowner and not worry about rent increases.She described her new house as "modest." "I made sure to buy something that was smart for me," she said. "I'm not going to buy a seven-bedroom house with a three-car garage."In Marietta, where the <a target="_blank" href="https://www.zillow.com/home-values/12562/marietta-ga/">average home costs $468,000</a>, Johnson wanted something she could afford even if she quit content creation.<h2 id="d2123658-9013-4e7e-b903-578de48a8d19">She's careful with her money</h2>Johnson's aware of how drastically sudden, accidental fame can change your life. "You get all this money starts flowing in and everybody has a hand out for something," she said.But her life experience has also taught her to be wise with her money. "I know what it's like to live from paycheck to paycheck," she said. "I grew up with a mom who was on welfare, so I know what it is to literally have $2 in my bank account."She said most of the content creation money has gone into her savings and that she limits shopping and eating out because they "can add up quickly." She values her full-time role because it comes with a steady income as well as medical insurance.Johnson said she would only leave her job for another full-time, stable position — never content creation, which can be volatile and time-consuming.Plus, it would suck the fun out of posting. Outside of sponsored content and media appearances, she only posts when she genuinely has something she wants to share. "I think that people would get sick of seeing me every single day," she said. "'Hey, get ready with me to go to work,' that's boring."

A TikTok creator doubled her income with a 50-part post about her husband. She keeps her day job for stability.

<ul class="summary-list"><li>I started working when I was 13 and haven't stopped since. </li><li>I'm in my early 50s and been wanting to have more time to do things I love. </li></ul>Julia put down her fork and blinked across the table at me, lids fluttering as rapidly as a hummingbird's wings. "You're what, now?" my closest friend asked."<a target="_blank" href="https://www.businessinsider.com/boomer-retiring-early-nervous-about-money-2024-5">Retiring</a>," I repeated around a mouthful of roasted beets. "End of this year, maybe the beginning of next."She waved away the server refilling water glasses and pelted me with a series of questions. "How will you pay for things? Won't you be bored? What if the next administration tanks the economy? Why now, when you've had the most successful run of your career?"The answers to her questions were: I've got it covered. Nope, never. That's a legitimate concern. And even though success has been rewarding, I want to live more now that I'm in my mid-50s, not spend whatever years I have left <a target="_blank" href="https://www.businessinsider.com/4k-monitor-vs-gaming-monitor-2019-2">in front of a computer screen</a>.<h2 id="b967ab24-bc0b-428a-b39f-d7ac0bb78f80">I started working when I was a teenager</h2>Thanks to a "work till you drop" ethic instilled by second-generation Italian-American parents, I first joined the workforce <a target="_blank" href="https://www.businessinsider.com/signs-you-need-a-new-babysitter-2022-6">as a babysitter</a> at 13. By 15, I was cashiering 20 hours a week in a local supermarket.Fast-forward through an advanced college degree and three decades of struggles, rejections, and career shifts in publishing, and I was back where I'd started: journalism, where I landed bylines in some of the world's <a target="_blank" href="https://www.businessinsider.com/guides/learning/best-journalism-writing-books">top publications</a>.It felt easy — for a while. But three summers ago, as darkness fell and crickets began their chirping courtship, I was still answering emails. My cat head-bumped me, begging for attention. Annoyed, I glanced up at the clock: 9:17 p.m. The entire day had passed, and I had little recollection of it beyond lunch, a walk, and a deadline. I felt the world shrink around me.<h2 id="c8d23c6c-5c4c-4a45-b616-e1c908a10259">I wanted more time to do the things I love</h2>That fall, while <a target="_blank" href="https://www.businessinsider.com/clear-kayaking-honduras-instagram-travel-trend-2021-9">out kayaking</a> — a favorite activity that freelancing should give me regular opportunities to indulge in but rarely does — my husband, Floren, and I started talking seriously about retirement. In an industry ravaged by closures and layoffs, I was now toiling twice as hard on the unpaid work of pitching stories just to get the same number of assignments. The pay had dropped in journalism to the point that my side hustle, yoga instruction, had outpaced its hourly rate.Floren and I kicked our planning into high gear. Inspired by a 2016 episode <a target="_blank" href="https://www.youtube.com/watch?v=gvZSpET11ZY">of Last Week Tonight with John Oliver on retirement planning</a>, we'd already moved our retirement savings from mutual funds managed by <a target="_blank" href="https://www.businessinsider.com/money-advice-no-one-wants-to-hear-financial-planner-2024-5">financial advisors</a> to index funds — and had comparable growth without forking over 2% a year in commissions and fees.We took a deep dive into other helpful tools for saving, investing, and cutting corners on spending, like "The Simple Path to Wealth" by J. L. Collins, the <a target="_blank" href="https://www.mrmoneymustache.com/">Mr. Money Mustache blog</a>, and the <a target="_blank" href="https://www.choosefi.com/">Choose Fi site and podcast</a>. The latter yielded opportunities to connect and learn from, via Facebook groups, other people, some as young as 40, who have already achieved financial independence.<h2 id="45bc0e0a-0d34-4db2-b2a5-f6f6964febc6">Knowing I will retire soon has made working more enjoyable</h2>Knowing retirement is happening in a couple of months has made present career circumstances more bearable and has given me something to look forward to. I'll spend at least a few years working 10 to 15 hours a week, most likely a mix of yoga classes, writing, and book editing and coaching for independent authors.I anticipate filling the rest of my time with home projects, plus sketching, wildlife watching, biking, and improving my Spanish. Some days I'll enjoy doing nothing at all.While exciting, the thought of throwing in the job towel occasionally makes me nervous. What if the stock market nose-dives? What if Floren or I wind up with massive medical bills? If I don't achieve all of my career goals before exiting, will I feel unfulfilled?There's no crystal-ball answer for the first three, but I know our financial planning is sound. I've also made peace with the fact that I might not reach every career goal I've set.As a society, we talk a good game about working with purpose, traveling with purpose, and even exercising with purpose. For me, living with purpose is the ultimate expression of success.

You Searched For "financial stability" and got 11 results

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Before buying a home, check this hidden financial risk

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A TikTok creator doubled her income with a 50-part post about her husband. She keeps her day job for stability.

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