risks to our growth prospects are slanted to the downside. the dark shadow of stagflation looms over us and our outlook. the indian experience in india, we have adopted an inflation targeting framework since 2016, with a target of 4 per cent defined in terms of headline cpi inflation within a tolerance band of + / - 2 per cent around it. policy decisions are taken by a majority vote by a monetary policy committee ( mpc ). there are strong accountability criteria embedded into the framework by legislation and associated regulations in the case of deviations of inflation outcomes from the target. while inflation averaged under 4 per cent during 2016 - 20, it rose to 6. 2 per cent in 2020 - 21 – the year of the pandemic ’ s first wave. although it moderated in the following year, i. e., 2021 - 22 to 5. 5 per cent and was projected to ease further to 4. 5 per cent in 2022 - 23 as recently as february 2022, the war in ukraine has altered the outlook drastically. although it appears to be moderating from its peak of 7. 8 per cent in april this year, we would prefer to await more incoming data before we are convinced that this a durable trend. while some easing of international commodity prices and supply chain pressures, both globally and domestically, are positive developments, upside risks remain in the form of potential second order effects and the transmission of input cost pressures to the sticky core component of inflation. for the financial year 2022 - 23 ( april - march ) as a whole, the rbi has projected that headline cpi inflation would average 6. 7 per cent. accordingly, the rbi has embarked on a front - loaded monetary policy response, with a cumulative 140 basis points increase in the policy rate so far, besides narrowing of the policy rate corridor in april that pulled up money market rates by 40 basis points from pandemic lows. in its latest meeting in early august, the monetary policy committee ( mpc ) decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. simultaneously, the rbi is engaged in withdrawal of the liquidity infused into the economy during the pandemic in a calibrated, multi - year time frame. as the inflation forecast performs the role of an intermediate target in the monetary policy framework, the rbi has taken several initiatives to strengthen inflation monitoring and improve the accuracy of forecasting. besides widening the ambit and depth

nbfc regulation - looking ahead1 dr. charan singh, shri deepak sood, shri ramesh iyer, shri vineet agarwal, shri s. ramann, shri sunil kanoria, shri raman agarwal, ladies and gentlemen, i thank the associated chambers of commerce and industry of india for this very kind invitation to address the ‘ national e - summit on non - banking finance companies ’ - with the theme “ stability and sustainability of financial sector ”. 2. at this juncture, nbfc sector is passing through a critical phase. recent failures of certain large non - banking financial companies ( nbfcs ), severe liquidity strain confronting the sector and the consequent financial stability concerns have brought nbfc regulations back into focus. i thought that the time is opportune to talk a little bit on the innovative transformations taking place in the nbfc sector and the regulatory response from the reserve bank. it would be contextual to take stock of the direction in which regulatory focus has moved and what could be the future shape of nbfc regulations. this is intended as an analysis to evoke discussion and debate on the subject. growth of nbfc sector and the need for prudence 3. nbfcs have come a long way in terms of their scale and diversity of operations. they now play a critical role in financial intermediation and promoting inclusive growth by providing last - mile access of financial services to meet the diversified financial needs of less - banked customers. over the years, the segment has grown rapidly, with a few of the large nbfcs becoming comparable in size to some of the private sector banks. the sector has also seen advent of many non - traditional players leveraging technology to adopt tech - based innovative business models. shri m. rajeshwar rao, deputy governor, reserve bank of india - speech delivered at the ‘ national e - summit on non - banking finance companies ’ organized by assocham on november 6, 2020. the inputs provided by shri manoranjan mishra, shri chandan kumar and shri pradeep kumar are gratefully acknowledged. 4. between march 31, 2009 and march 31, 2019, the total assets 2 of nbfcs grew at a compounded annual growth rate ( cagr ) of 18. 6 per cent, while the balance sheets of scheduled commercial banks ( scbs ) grew at a cagr of 10. 7 per cent. consequently, the