Independent Research and Policy Advocacy

RBI’s Resolution Frameworks: A Case for Extension and Amendment

In this blog post, we answer the first two questions. In the next post, we shall present a principle-based approach that the RBI may adopt, thus answering the third question of how the current regulations should be amended or augmented to enhance their efficacy.

A Principles-based Evaluation of Public MSME Credit Guarantee Schemes in India

In this policy brief, we evaluate the design and operation of the public credit guarantee schemes for MSMEs present in India, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the Credit Guarantee Fund for Micro Units (CGFMU), against the principles developed by the World Bank Group (WBG) and Financial Sect

Household Savings & The Macroeconomy

In this paper, we document some key relationships between micro-level household behavior and macro-level aggregates for the Indian economy. Using the CMIE’s Consumer Pyramids Survey, we show that for the period 2014-19, the household-level savings rate around the median of the income distribution correlates strongly with, and has predictive power for, macro-aggregate variables such as the Wholesale Price Index and its rate of change, the Prime Lending Rate, the growth rate of bank credit for personal loans, the growth rate of industry-sector GDP, and the growth rate of bank credit to the household sector.