away by the government sector, it has vital implications for ensuring stability in the financial markets because the demand for funds from the non - government productive sectors of the economy has to be met simultaneously. fourth, india is still a bank - dominated system and about 70 per cent of our banks ( in terms of business ) are owned by the government. thus, we could have a situation when the objective of monetary policy and the objective of broader public policy dealings with banking converge, in which case the monetary policy could be very effective. sometimes, it could happen that the objective of monetary policy and the objective of broader public policy may not converge, in which case monetary policy may not be that effective. in other words, the effectiveness of the monetary policy depends not only on the actions of the monetary authority, but also on other public policy postures. this certainly complicates monetary management. of course, the issue of conflict of interest in public sector banking and government ownership is yet another issue. the issue of conflict of interest in private sector banks arises when the owner of the bank borrows from his own bank. the single largest source of borrowing for the government being the government - owned banks themselves, this conflict is rather apparent. fifth, one of the factors imparting rigidity to the interest rate structure in india is the administered interest rates, particularly on small savings instruments. in this context, administered interest rates fixed by the government on a number of small saving schemes and provident funds are of special relevance as they have generally offered a rate different from those on corresponding instruments available in the market, in some cases along with tax incentives. the administered interest rates significantly impact the level and allocation of savings. on the lending side also, there are some administrative prescriptions for banks. depending on how it is calculated, on both the savings and the lending sides, the administered structure of interest rate would apply to about 25 to 40 per cent. in this context, it is pertinent to note that the monetary policy mainly operates through interest rates and interest rate signals, and constraints posed by administered interest rates have to be duly recognized while dealing with issues relating to monetary policy transmission mechanisms. sixth, theoretically it is well recognised that monetary policy is generally a more effective counter - cyclical policy instrument than fiscal policy because interest rate changes can be made and reversed quickly. however, monetary policy adjustments may take longer than fiscal policy adjustments to affect aggregate demand. it is also recognized that fiscal policy contributes to broader - based stabilization through

to play in mobilising the badly needed investments. however, again and again, we have seen that investors struggle to identify what qualifies as sustainable or green – and what does not. this ambiguity leaves the door open to greenwashing. investors need to be certain that their money is actually contributing to the transition. transparency is key for aligning investment with net zero objectives. 4 enhancing market transparency high - quality climate - related data are crucial for aligning capital flows with lowcarbon transition pathways. there is, however, room for improvement regarding the quality and quantity of data. acknowledging the need for better data, the global network for greening the financial system ( ngfs ( central banks and supervisors network for greening the financial system ) ) has recently launched a new data directory. it serves as a central catalogue of available climate - related data sources and supports stakeholders in finding the sources relevant to them. the data directory facilitates access to these data and, importantly, it is available to the wider public. currently, the data directory contains more than 700 links to relevant data sources. in this way, the ngfs ( central banks and supervisors network for greening the financial system ) is helping to identify existing data gaps. similarly, the ngfs ( central banks and supervisors network for greening the financial system ) ’ s widely recognised scenario analyses also contribute to greater transparency. they not only allow us to put a price tag on delayed policy action. they also highlight how transition and physical risks would leave a mark on the world economy. moreover, regulatory ambition to enhance transparency has increased in recent years. at the eu ( european union ) level, promising steps are being taken to enhance corporate sustainability reporting. eu ( european union ) rules require large firms and financial institutions to disclose the environmental and social impacts of their activities – namely the corporate sustainability reporting directive ( csrd ) and the sustainable finance disclosure regulation ( sfdr ). in addition, eu ( european union ) sustainability reporting standards are currently being developed. these should ensure consistency of reporting rules and are envisaged to become part of the csrd. the european financial reporting advisory group ( efrag ) has been tasked with drafting them. a first set of standards is expected to be adopted by october 2022. while those steps are laudable, it is important to bear in mind complexity and practicability. aligning disclosure standards globally must take priority. building on and contributing to international standardisation initiatives will be vital. in this regards, the