The Reserve Bank of India (RBI.
| Photo Credit: Reuters
The size of the Reserve Bank’s balance sheet increased by 2.5% for the year ended on March 31 to about ₹63.45 lakh crore on higher income, as per the Central bank’s annual report released on May 30.
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.
“The size of the balance sheet increased by ₹1,54,453.97 crore, i.e., 2.50% from ₹61,90,302.27 crore as on March 31, 2022 to ₹63,44,756.24 crore as on March 31, 2023,” the report said.
While income for the year increased by 47.06%, the expenditure increased by 14.05%.
The year ended with an overall surplus of ₹87,416.22 crore as against ₹30,307.45 crore in the previous year, resulting in an increase of 188.43%.
The RBI transfers the surplus as dividend to the Central government.
“The increase on the asset side was due to rise in foreign investments, gold, and loans and advances by 2.31%, 15.30% and 38.33%, respectively,” the RBI said.
On the liability side, the expansion was due to increase in notes issued, revaluation accounts and other liabilities by 7.81%, 20.50% and 79.07%, respectively.
RBI further said domestic assets constituted 27.69% while the foreign currency assets and gold (including gold deposit and gold held in India) constituted 72.31% of total assets as on March 31, 2023 as against 28.22% and 71.78%, respectively, as on March 31, 2022.
A provision of about ₹1.31 lakh crore was made and transferred to Contingency Fund (CF). No provision was made towards Asset Development Fund (ADF).
The Central bank spent ₹4,682.80 crore on printing of currency notes during 2022-23, marginally lower than ₹4,984.80 crore in the preceding year.
As on March 31, 2023, total gold held by the Reserve Bank was 794.63 metric tonnes as compared to 760.42 metric tonnes as on March 31, 2022.
The increase, the RBI said, is on account of addition of 34.21 metric tonnes of gold during the year.
The value of gold (including gold deposit) held as asset of Banking Department increased by 17.20% from ₹1,96,864.38 crore as on March 31, 2022 to ₹2,30,733.95 crore as on March 31, 2023, the RBI said.