Date : Aug 24, 2015
RBI releases the Report of the Working Group on Compilation of Flow of Funds Accounts for Indian Economy
The Reserve Bank of India today placed on its website the Report of the Working Group on Compilation of Flow of Funds Accounts for Indian Economy. The report is accompanied by a manual on the compilation methodology. Comments/feedback on the recommendations of the report and on the manual may be sent by September 15, 2015 by email or by post to the Principal Adviser, Department of Economic and Policy Research, Reserve Bank of India, Central Office, Shahid Bhagat Singh Marg, Mumbai-400 001.
The Flow of Funds (FOF) accounts represent a systematic record of financial transactions through a variety of instruments among the various sectors of the economy during a given period of time. The FOF accounts serve as an important analytical tool to assess (a) the nature and pace of financial development of the economy, (b) the relationship between the financial sector and the real economy and (c) financial inter-connectedness as well as financial stability/vulnerability of the economy.
The Reserve Bank has been compiling annual FOF data since the early 1960s. In order to address data gaps that have emerged, especially in the aftermath of the global financial crisis, and the need for adopting evolving international best practices, the Working Group has recommended restructuring of the extant FOF accounts in line with the United Nations’ System of National Accounts (SNA), 2008 to the extent feasible, broadening of the coverage in terms of institutions, instruments and sources of data; revisions in the formats for data collation; and fora for interactions among stakeholders to vet and validate the compiled FOF accounts data of the respective sectors; and reviews of methodology, data gaps, and other issues at periodic intervals.
Principal Chief General Manager (Source- RBI Press Release)
Press Release : 2015-2016/472