RBI economist proposes financial conditions index for India

Index aims to provide a snapshot of financial conditions in the country

Reserve Bank of India in Mumbai
The RBI's premises in Mumbai
Photo: RBI

A working paper from the Reserve Bank of India (RBI) has proposed a ‘financial conditions index' for India aiming to capture the state of financial conditions in the country and help the populous overcome the problem of information asymmetry, which can exacerbate financial crises.

In A financial conditions index for India, Anand Shankar – a research officer in the RBI's Financial Stability Unit – creates an index that "is the synthesis of information content in the money, bond, foreign exchange

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