ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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crorein 1994-95.
Examining different banking data it seems obvious that in compiling the estimate of household saving in financial assets, the RBI has not used the March 31 figures as is generally done. Instead, as was done for the compilation of monetary and banking statistics, figures of bank deposits of scheduled commercial banks for 27 fortnights in 1994-95 (Rs 71,726 crore) and for 26 fortnights in 1993-94 (Rs 46,560crore) have been used for saving estimation. This is clearly wrong. For estimating domestic saving, March 3 1 figures are always taken as year-end interest earnings of depositors cannot be ignored. If a new methodology has to be adopted so as to take care of the year- end bulge in bank deposits, such as averages of a few fortnights and March 31, the change would have to be considered carefully and the time series would have to be recast on those lines. It is obviously wrong to take data for an unequal number of fortnights in the different years as this would distort the saving trends. It is very likely that the same error has crept in into the use of bank advances to estimate household liabilities.

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