The Reserve Bank of India today released the March 2015 issue of its monthly Bulletin. The Bulletin includes the Statement by Dr. Raghuram Rajan, Governor on Monetary Policy dated March 4, 2015, speeches by the Top Management as well as Current Statistics. It also includes three articles: 1. Developments in India’s Balance of Payments during the Second Quarter (July–September) of 2014-15; 2. Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014; and 3. Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14.

1. Developments in India's Balance of Payments during the Second Quarter (July-September) of 2014-15

Highlights:

• India’s current account deficit (CAD) in Q2 of 2014-15 was relatively higher than in the preceding quarter, primarily on account of a higher trade deficit.

• Net services receipts improved in Q2 of 2014-15 from their level a year ago largely on account of pick-up in telecommunication, computer and information services.

• Net outflow on account of primary income, comprising investment income and compensation of employees continued in Q2 of 2014-15.

• During Q2 of 2014-15, net receipts under secondary income, comprising mainly remittances, showed an improvement in relation to their level a year ago.

• The CAD increased to 2.0 per cent of GDP in Q2 of 2014-15 from 1.7 per cent of GDP in Q2 of 2013-14.

• Net capital inflows were driven by robust FDI inflows and a sharp turnaround in FII flows.

• There was a net accretion of US$ 6.9 billion to India’s foreign exchange reserves during H1 of 2014-15 as against a drawdown of US$ 10.4 billion during the same period of the preceding year.

2. Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014

The article presents the changes in composition of deposits with Scheduled Commercial Banks (SCBs) according to institutional ownership (viz., household, Government, non-financial private corporate, financial and foreign sectors), type of deposits, population groups, bank groups and states/UTs in March 2014.

Highlights:

• Growth in total deposits accelerated to 13.8 per cent in March 2014 from 11.5 per cent in March 2013. All types of deposits were seen to accelerate in March 2014. However, the growth in current deposits was lower than that of interest bearing deposits (i.e., savings and term).

• The term deposits at 64.9 per cent remained the major constituent of total deposits, followed by savings deposits at 26.2 per cent.

• Households were the largest contributor in total deposits in 2014 with a share of 59.7 per cent. The share of foreign sector in total deposits increased substantially from 4.1 per cent in March 2013 to 6.6 per cent in March 2014, mainly on account of non-resident deposits.

• Metropolitan branches followed by urban and semi-urban branches continued to lead deposit generation by SCBs, mainly in the form of term deposits. In rural branches, savings deposits dominated followed by term deposits.

• Public sector banks through their large branch network held the largest share (74.0 per cent) in total deposits in March 2014 followed by private sector banks (18.8 per cent).

• Deposits mobilised by SCBs were highly concentrated with seven states/UTs comprising around 68 per cent of total deposits.

3. Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14

The article presents information on export of software services as per the activity, type of services (on-site/off-site) and country of destination along with the four modes of supply (cross-border supply, consumption abroad, commercial presence and presence of natural person). The current round of survey covered 745 companies which includes most of the large companies, covering 74.7 per cent of the total estimated software exports during 2013-14.

Highlights:

• India’s export of software services during 2013-14 stood at ` 4,322.8 billion (US$ 71.4 billion), of which computer services exports accounted for 73.6 per cent.

• The global software export of India including the services rendered by foreign affiliates established abroad was estimated at ` 5,011.8 billion (US$ 82.8 billion).

• The share of on-site exports increased in 2013-14, for the first time after 2008-09 even as Mode-1 (cross-border supply) continued to be the major mode of software services exports.

• USA continued to remain the top destination for software exports and US dollar remained the major invoice currency for software exports during 2013-14.

Alpana Killawala
Principal Chief General Manager

Press Release : 2014-2015/1896