Among the working groups constituted by the RBI in recent years the reports of three working groups pertaining to financial sector and external sector viz. Working Group on Money Supply (Chairman Dr. Y.V. Reddy), Technical Group on External Debt(Chairman: Shri M.R. Nair), Sub-Group on Reporting of Foreign Exchange Transactions by Authorised Dealers (Chairman Shri S.P. Paniyadi) have relevance to the SDDS as discussed below:
5.1 Working Group on Money Supply:
The SDDS prescribes under the data category 'analytical accounts of the central bank' in the financial sector among other items that components should include: reserve money, base money, or the monetary base. A working group on 'Money Supply: Analytics and Methodology of Compilation' (Chairman Dr. Y.V. Reddy) was set up in December 1997 to relook into the methodology of compilation of monetary aggregates in India to ensure proximity of Indian standards in this regard to the international ones. The group defined four monetary aggregates including the monetary base or reserve money that is to be compiled from the balance sheet of the central bank i.e. the Reserve Bank of India. The monetary base or reserve money denoted by Mo was defined by the group as
Mo = Currency in circulation + Bankers' Deposits with the RBI + 'Other' Deposits with the RBI.
The report was submitted in June 1998. Major recommendations of the group include (Source: RBI Annual Report, 1997-98):
5.2 Technical Group on External Debt:
A technical group on external debt (Chairman: Shri M.R. Nair) was appointed in March 1998 to examine the need to redefine the coverage, compilation and presentation of India's external debt statistics. The major recommendations of the report of the group submitted in May 1998 included publication of External debt statistics on a quarterly basis within a quarter of the reference date. It may be noted here that IMF staff has also proposed that the SDDS prescribes dissemination of quarterly external debt statistics within one quarter of the reference period (see sub-section 2.8.2 of Appendix II). The Technical Group also recommended compilation and presentation of external debt initially both on original and residual maturity basis, and finally only on residual maturity basis. The Group also made few recommendations on International Investment Position (IIP) of India [suggestions are also made on IIP in the draft of the Report of the Sub-Group (Volume I) on Financial and External Sector Statistics for National Statistics Commission]. The major recommendations of the report of the group are mentioned below (Source RBI Annual Report, 1997-98):
5.3 Sub-Group on Reporting of Foreign Exchange Transactions by Authorised Dealers:
With a view to expediting the compilation of quarterly BoP statistics (with the lag not to exceed one quarter) in the context of meeting the provisions of the SDDS by end December 1998, the RBI constituted a sub group (Chairman Shri S.P. Paniyadi) in December 1996 on the reporting of foreign exchange transactions by the Authorised Dealers (ADs) under the aegis of the Standing Committee on BoP statistics. The group submitted its report in February 1997. The subgroup, inter alia, recommended, and subsequently implemented by the RBI, that purpose wise details of foreign exchange transactions may be collected in floppy diskettes from 421 critical branches of ADs covering about 85 percent of total foreign exchange business, with a view to expediting the compilation of BoP statistics. Implementation of the same helped the RBI to meet the provisions of the SDDS in respect of BoP statistics.