capital adequacy framework, which has just been issued by the bis as a consultative paper for comments, is reviewing this norm. most of the above proposals have the effect of increasing the cost of short - term debt. hence, these developments would be of interest to the corporate sector. in india, we carefully monitor short - term debt. we maintain a difference in treatment between trade - and non - trade - related debt. the authorities sanction short - term debt over six months on a case - by - case approval of purpose, amount and terms, within a sub - ceiling of the total external commercial borrowings ceiling. nri deposits are controlled through specification of interest rates or interest rate ceilings for different maturities in respect of deposits in select schemes. according to the latest status report on external debt circulated by the ministry of finance, our short - term debt is very modest by all criteria. the international consensus on the need for controlling short - term debt vindicates our policy thrust with regard to discouraging short - term flows. we will have to continue with the objective of restricting short - term flows, though the means of doing it could be refined from time to time in consonance with domestic and, to some extent, global developments. policies relating to transparency and standards a major area of concern has been lack of transparency in regard to macroeconomic and financial health. the issue of transparency has generated some debate. transparency cannot be one - sided – say only by public systems and not the corporate sector. transparency provides information and inference is a matter of interpretation or judgement. there are country - specific circumstances also that govern the degree of transparency, which include the timing of some disclosures. india is one of the earliest members of the sdds of the imf. the rbi provides up - to - date weekly data on all relevant macroeconomic and financial indicators through the weekly statistical supplement to the rbi bulletin, which is available on the rbi website. in addition, the rbi and government disseminates as much information as possible through monthly, quarterly and annual publications. the world bank, imf, bis, oecd and other international institutions are active in the evolution of standards relevant for the functioning of domestic and international financial systems. these cover a wide range of areas including data dissemination, fiscal, monetary and financial policy transparency ( imf ), banking regulation and supervision ( bis ), securities market regulation ( international organization of securities commissions ), insurance regulation ( international association of insurance supervisors

3 ), 537 - 558. 11 huang, h. and lin, s. ( 2009 ). non ‐ linear finance – growth nexus. the economics of transition 17 ( 3 ), 439 - 466. 12 levine, r., ( 2004 ). finance and growth : theory and evidence, nber working paper no. 10766 ; romer, p. m., ( 1990 ). endogenous technological change, journal of political economy, 98 ( 5, part 2 ), s71 - s102. widespread sell - off and a global unwinding of carry trade. analogously, the global inflation surge in the wake of the war in ukraine provoked a synchronised and aggressive tightening of monetary policy and financial conditions, resulting in bank failures and deposit runs in some jurisdictions in march 2023. iv. situating finance in national accounting in the circular flow of income and expenditure that describes the working of an economy, transactions in goods, services, compensations and taxes are matched by flows of saving and investment, which represent inter - sectoral transfers of lendable resources. in india, the household sector typically generates surplus saving relative to its investment which it lends to other sectors. recently, net financial saving of households has almost halved from its level in 2020 - 21 due to behavioural changes underway in the form of unwinding of prudential savings accumulated during the pandemic as well as shifts from financial assets to physical assets such as housing. going forward, boosted by rising incomes, households will likely build back their financial assets – 15 per cent of gdp was observed during the early 2000s up to the global financial crisis. this process has already begun – households ’ financial assets have increased from 10. 6 per cent of gdp during 2011 - 17 to 11. 5 per cent during 2017 - 23 ( excluding the pandemic year ). their physical savings have also risen in the postpandemic years to over 12 per cent of gdp and could rise further – they had reached 16 per cent of gdp in 2010 - 11. accordingly, households will remain the top net lenders to the rest of the economy in the coming decades. the private corporate sector has drastically reduced its net borrowings from the rest of the economy 13, reflecting a combination of rising internal accruals and subdued capacity creation. looking ahead, its net borrowing requirement is likely to rise on the back of a revival in the capex cycle. these financing