revised liquidity management framework was thus instituted by the rbi in february 2020. in april 2022, significant changes were instituted in the operating procedure of monetary policy through the introduction of the standing deposit facility ( sdf ) as the floor of the laf corridor. the sdf rate is applicable on uncollateralised overnight deposits and would act as a financial stability tool1. 8. projections of currency in circulation ( cic ) also constitutes a key element of our liquidity management operations. since currency in circulation drains out liquidity from the banking system, projections of its future levels are typically used as an input to finetune the volume of central banks'market operations. 9. a significant technological innovation in the rbi's liquidity management operations has been the introduction of the automated sweep - in and sweep - out ( asiso ) facility. the asiso facility was introduced by the reserve bank in its e - kuber system in august 2020. consequently, the banks are now able to set the amount that they wish to keep as balances in their current accounts with the reserve bank at the end of the day. depending upon this pre - set amount, marginal standing facility ( msf ) and standing deposit facility ( sdf ) bids, as warranted, are auto generated at the end of the day. 10. further, as you are aware, the rbi is currently working towards a phased implementation of the digital rupee ( e ). yesterday ( 1st november, 2022 ), we have started our pilot project on wholesale cbdc. we propose to commence the pilot project for retail cbdcs shortly. 2 / 7 bis - central bankers'speeches ii. strengthening the regulatory framework of banks, nbfcs, ucbs, payment systems and arcs 11. the global shocks and turmoil over the last three years did not distract us from our overarching goal of strengthening the resilience of the financial system and reinforcing financial stability. throughout this entire period, we worked tirelessly and have introduced fresh guidelines in several areas. these include issuance of guidelines on governance in commercial banks in april 2021 ; a steady - state prudential framework for resolution of stressed assets in june 2019 ; securitisation of standard assets in july 2021 ; scale based regulatory ( sbr ) framework for nbfcs in oct 2021 ; revised regulatory framework for urban cooperative banks in july 2022 ; guidelines on digital lending in september 2022 ; revised guidelines for arcs in october 2022

##2 has appreciated by 3. 7 per cent in real terms even as the euro, the japanese yen, the pound sterling and the chinese yuan have depreciated. thus, even in real terms, the inr is the least misaligned in the face of tsunamis of global spillovers. 31. the story of currency movements following the war in ukraine is more about india's resilience and stability in the face of the unrelenting strengthening of the us dollar rather than a story of weakness. 32. it is important to evaluate these currency movements against the backdrop of global and domestic macroeconomic and financial developments. since march 2020, the world has been buffeted by extraordinary and repetitive shocks. i have spoken of the pandemic and the war in ukraine as black swan events. there is yet another shock – globalised inflation. the most recent shock has been the aggressive and synchronous monetary policy tightening around the world and the accompanying hawkish forward guidance. this has pitched the world into a storm. the result has been tightening of external financial conditions, capital flight from emerging markets, sharp currency depreciations and reserve losses. no country can be immune to these developments. yet the strength of our macro - fundamentals has stood out in comparison with peers, bearing testimony to prudent macroeconomic policies and the resilience of the buffers we have built up. 33. an assessment of india's innate strengths can be gauged from a comparison of the state of the economy today after three years of multiple shocks, with the situation during the taper tantrum in 2013 when india was labelled as among the fragile five. india's current account deficit had widened to 4. 8 per cent of gdp in 2012 - 13, clearly above the sustainable level. now at 1. 2 per cent of gdp in 2021 - 22 and 2. 8 per cent of gdp in june 2022, it has remained within the sustainability threshold. the ratio of reserves to total external debt has increased to 95. 5 per cent in june 2022 from 71. 3 per cent in 2012 - 13. the debt service ratio ( principal repayments and interest payments as a ratio of current earnings ) at 4. 9 per cent in june 2022 was lower than 5. 9 per cent in 201213. currently, it is one of the lowest among emerging market peers. 6 / 7 bis - central bankers'speeches 34. fundamental factors that drive the exchange rate have also moved