Economic Survey 2017: Volume II: Chapter 3: Monetary Management and Financial Intermediation

During 2017-18 (till January), monetary policy remained steady with only one policy rate cut in August. As the Y-o-Y effect of demonetisation wore off, the growth rate of both Currency in Circulation and M0 turned sharply positive. However, bank credit growth remains subdued, especially to the industrial sector. The 10 year G-sec yield, meanwhile, has hardened since September 2017. An ecosystem for the new insolvency and bankruptcy process took shape in 2017-18. The IBC mechanism is being used actively to resolve the NPA problem of the banking sector. The stock markets also hit record highs this financial year.