Amit Tripathi on monetary policy and Indian banks | Subtext by Zerodha

Start your investing journey for free! Open a zero-brokerage Demat and trading account with Zerodha to invest in Stocks, Mutual Funds, ETFs, and Bonds: https://zerodha.com/open-account/?c=Z... In this episode of Subtext, host Kashish sits down with Amit, CIO of Fixed Income at Nippon India to break down one of the most misunderstood concepts in Indian finance: monetary policy transmission. From repo rates and CASA ratios to liquidity dynamics, FCNR deposits, and the future of securitization in Indian banking, this conversation strips away the jargon and explains, from first principles, how money moves through the Indian economy. Topics covered: What is the repo rate and why can't banks just borrow from RBI forever? Why banks' cost of funds has become delinked from the policy rate How liquidity (not just the repo rate) drives real interest rates The role of capital markets vs. banks in credit creation What the RBI's FCNR announcement really solved The future of Indian banking: securitization, efficiency & innovation Video Mentioned: Amit's interview on CNBC - https://x.com/CNBCTV18News/status/205... Chapters: 0:00 Introduction 5:22 What is Repo Rate? 9:07 How Banks Fund Themselves 11:18 CASA Decline & Rising Cost of Funds 13:10 Credit Growth vs Deposit Pressure 15:00 Liquidity, Open Systems & RBI's Role 23:31 FCNR Announcement Explained 30:18 How NBFCs Are Affected 35:29 Liquidity vs Repo Rate: What Matters More 39:23 Role of Capital Markets in Credit 45:55 Future of Banking