RBI for FOF accounts to be published separately

MUMBAI: Releasing a working group report on compilation of flow of funds (FOF) accounts to assess nature and pace of financial development, RBI today recommended that FOF accounts of money market funds and non-MMFs would be compiled and published separately.

"The FOF accounts of Money Market Funds (MMFs) and Non-MMFs would be compiled and published separately instead of the mutual funds sector which was part of the other financial institutions in the extant FOF accounts," said the report in its recommendations for the short-term.

The working group report said compilation of FOF accounts for Indian economy may be restructured with adoption of five mutually exclusive institutional sectors - non-financial corporations, financial corporations, general government, households and non-profit institutions serving households (NPISHs) and the Rest of the World.

It said, in the new framework, non-financial corporations sector would include Non-Government Non-Financial Public and Private Limited Companies, Government Non-Financial Departmental/Non-Departmental Commercial Undertakings, Port Trusts (public and private) and Cooperative Non-Credit Societies.

"The FOF accounts of the provident/pension funds may be compiled separately and comprise non-government provident/ pension funds," it said.

The central and state government Employees Provident Fund would, however, be included under the central and state governments sectors, respectively, as per the report.

It said the FOF accounts of RBI will continue to be compiled as is done at present.

Further, FOF accounts of insurance companies would continue to be compiled as is done at present.

Among others, it has also recommended that the RBI may examine the possibility of compiling and publishing the FOF accounts on quarterly basis beginning with the financial sector.

"The data flow into the FOF database to be automated to the extent possible.

Institution of a database system (such as Oracle) as the back-end for FOF data compilation and an appropriate front-end tool for report generation and data quality checks may be examined," it added.

RBI has invited comments and feedback on recommendations of the report by September 15, 2015 by email or by post.