Page 47 - Banking Finance June 2020

ARTICLE

aggregate domestic demand. An inflation number higher Parting note…
than the average interest rate in the country can torment
Our economy is an emerging one and is in a precarious
the investors with negative real return, while bludgeoning position. The divestment of public sector entities and the
the economy with a huge fiscal deficit. In the present
financial lubrication provided by the banks is drying up. A
scenario, the inflation is expected to hover around 4% and
slew of measures by RBI in the recent past has paved a way
may dip further going southwards.Hence the current
for some hope however problems have snowballed in form
interest rate regime shall still benefit the investors.
or the other.
X Indian depositors may be hesitant and reluctant to pay
a fee for the bank to take care of their deposits and The recovery of our economy after this phase will mark a
banks will find it extremely difficult to convince the new beginning for our country and with the passage of time
masses. will travel to the annals of history as probably one of the
X Banks have to also cater to the needs of the under- most discussed cases in the world.
banked and unbanked masses as a measure of financial
inclusion and cannot afford to tweak the traditional The views, thoughts and opinion are solely of the writer and
banking mix as it will be met with lot of skepticism and are not endorsed by his employer .His views may or may
apprehension. not culminate into reality. T

Monsoon covers entire country: IMD

The southwest monsoon covered the entire country on Friday, with the winds reaching west Rajasthan, the weather
office said. It is nearly two weeks ahead of its usual date of July 8.

Currently, the country is enjoying healthy monsoon rainfall, at a surplus of 21% till June 25, said the India Meteorological
Department (IMD). This is good news for more than two-thirds of the country that is dependent on the agricultural
sector, and are expecting a bumper crop that will raise spirits as the lockdown has battered the country's economy.

Barring some parts of south India, onset of rainfall started well before their expected dates. "The rapid development
of low pressure areas and cyclonic circulations has helped the monsoon to make quick progress in most parts of the
country," M. Mohapatra, DG of IMD said.
Cyclone Amphan hurried the monsoon winds over Andaman Islands, the first major milestone in its progress towards
the country, five days before its usual date. Although this was expected to slow the onset over mainland India by a
few days, Cyclone Nisaraga offset the delay and brought it to Kerala on its normal date of June 1.

Central India has led the charge, with 50% above normal rainfall. All other subdivisions have shown an above normal
monsoon rainfall as well.

A La Nina is also expected to form in the latter half of the monsoon season this year. This phenomenon is associated
with an above-normal rainfall for the Indian subcontinent.

The next two weeks are likely to bring heavy rainfall over east, northeast, central, and south India. Rainfall over north
India is expected to strengthen after that, as the circulation of the monsoon winds improves, per the IMD.

Last year, monsoon winds were delayed by up to two weeks over most regions, with rainfall in June ending with a
record 33% deficit. This prompted the IMD to revise their normal onset and withdrawal dates for most parts of the
country. Till 2019, the normal date for the monsoon covering the entire country was July 15, which was brought forward
to July 8.

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