RBI balance sheet grows 11% to Rs 70.47 lakh crore in FY24

The balance sheet of the RBI plays a critical role in the functioning of the country’s economy largely reflecting the activities carried out in pursuance of its currency issue function as well as monetary policy and reserve management objectives. In FY24, increase on assets side was due to a rise in foreign investments, gold, and loans and advances by 13.9 per cent, 18.26 per cent and 30.05 per cent, respectively, the RBI said in the annual report for 2023-24.

The RBI’s domestic assets constituted 23.31 per cent while foreign currency assets, gold (including gold deposit and gold held in India) and loans and advances to financial institutions outside India constituted 76.69 per cent of total assets as on March 31, 2024 as against 26.08 per cent and 73.92 per cent, respectively, as on March 31, 2023. On the liabilities side, the balance sheet expansion was due to an increase in notes issued, deposits and other liabilities by 3.88 per cent, 27 per cent and 92.57 per cent, respectively, the annual report said.

The RBI’s income stood at Rs 2.75 lakh crore, up 17.04 per cent as against Rs 2.35 lakh crore in the FY2022-23, according to the central bank’s annual report.

Its interest income rose 31.82 per cent to Rs 1.88 lakh crore in 2023-24 from Rs 1.43 lakh crore in 2022-23. Interest income from foreign securities increased 49.7 per cent to Rs 65,327.93 crore from Rs 43,649.26 crore. Interest on foreign deposits grew 129.12 per cent to Rs 37,621.07 crore from Rs 16,419.67 crore. Interest on holding of rupee securities dropped 4.07 per cent to Rs 92,589.51 crore as compared to Rs 96,516.05 in FY23.

The RBI’s expenditure dropped sharply by 56.3 per cent to Rs 64,694.33 crore in FY2024 from Rs 1.48 lakh crore in FY2023. It made a provision of Rs 42,819.91 crore and transferred to contingency fund (CF). The FY24 provision was 67 per cent lower compared to Rs 1.31 lakh crore made in FY23, the annual report showed.

Contingency Fund represents the provision made by the RBI on a year-to-year basis. This is specific provision meant for meeting unexpected and unforeseen contingencies, including depreciation in the value of securities, risks arising out of monetary/exchange rate policy operations, systemic risks and any risk arising on account of the special responsibilities enjoined upon the RBI.

The RBI’s surplus transfer to the government in FY24 increased by 141.2 per cent to a record high of Rs 2.11 lakh crore as against Rs 87,416.22 crore in FY23.