FY24: RBI increases by 11% to Rs 70.47 lakh crore: From Rs 63.44 lakh crore in the fiscal year 2022–2023 to Rs 70.47 lakh crore in the fiscal year that concluded on March 31, 2024, the Reserve Bank of India’s (RBI) balance sheet increased by 11.07 percent.
The RBI’s revenue increased by 17.04 percent in the fiscal year 2023–24, while the amount allocated to the contingency fund (CF) decreased by 67%. As a result, the government received a record-breaking surplus transfer of Rs 2.11 lakh crore for the fiscal year.
The country’s economy depends heavily on the RBI’s balance sheet, which primarily reflects the actions taken to fulfill its duty as currency issuer and to further monetary policy and reserve management goals. According to the RBI’s annual report for 2023–24, the growth in assets was caused by increases in foreign investments, gold, and loans and advances of 13.9%, 18.26%, and 30.5%, respectively.
As of March 31, 2024, the RBI’s total assets were composed of foreign currency assets, gold (including gold deposits and gold held in India), loans and advances to financial institutions outside of India, and domestic assets, which accounted for 23.31 percent. By comparison, as of March 31, 2023, the percentages were 26.08 percent and 73.92 percent, respectively. According to the annual report, the rise in notes issued, deposits, and other liabilities by 3.88 percent, 27%, and 92.57%, respectively, was the cause of the balance sheet expansion on the liabilities side.
According to the central bank’s annual report, the RBI’s income was Rs 2.75 lakh crore, up 17.04 percent from Rs 2.35 lakh crore in the FY2022-23.
Its interest income increased from Rs 1.43 lakh crore in 2022–2023 to Rs 1.88 lakh crore in 2023–2024, a 31.82 percent increase. Interest revenue from foreign securities climbed from Rs 43,649.26 crore to Rs 65,327.93 crore, a 49.7% rise. Interest on foreign deposits increased from Rs 16,419.67 crore to Rs 37,621.07 crore, a 129.12% increase. Compared to Rs 96,516.05 crore in FY23, interest on holding rupee securities decreased by 4.07 percent to Rs 92,589.51 crore.
From Rs 1.48 lakh crore in FY2023 to Rs 64,694.33 crore in FY2024, the RBI’s spending fell precipitously by 56.3%. Rs 42,819.91 crore was set aside and put to the contingency fund (CF). According to the annual report, the FY24 provision was 67% less than the Rs 1.31 lakh crore made in FY23.
The Reserve Bank of India’s annual provision is known as the Contingency Fund. This particular provision is intended to cover unforeseen and unanticipated events, such as depreciation in the value of securities, risks associated with the implementation of monetary and exchange rate policies, systemic risks, and any risk resulting from the RBI’s unique responsibilities.
Compared to Rs 87,416.22 crore in FY23, the RBI’s surplus transfer to the government in FY24 jumped by 141.2% to a record high of Rs 2.11 lakh crore.
