Monetary policy in the country moved into a tightening mode in May 2022 amidst inflationary pressures emanating from the conflict in Ukraine, rise in international commodity prices, disruption of supply chains and volatility in global financial market.
As inflation continues to decline from its peak value reported in July, it continues to boost macroeconomic fundamentals, said RBI in its ‘State of Economy’ article
According to an analysis by economists from the Reserve Bank of India, the fiscal burden on states from reverting to the Old Pension Scheme will be around four-and-a-half-times that of the National Pension System
While terming the move as a "major step backwards", the article - authored by Rachit Solanki, Somnath Sharma, R K Sinha, S R Behera and Atri Mukherjee - said that the cumulative fiscal burden in the case of the OPS could be as high as 4.5 times that of the New Pension Scheme. The views expressed in the research paper are not that of the RBI.