The Reserve Bank of India (RBI) has released its Annual Report for 2023-24, presented to the Central Government under Section 53 (2) of the Reserve Bank of India Act, 1934. This statutory report details the workings and functions of the RBI from April 2023 to March 2024.
Key Highlights:
- Growth Projections: The RBI forecasts real GDP growth at 7% for the fiscal year 2024-25. This marks the third consecutive year of 7% or higher growth.
- Economic Performance: The economy’s real GDP growth increased to 7.6% from 7.0% in 2023-24.
- Investment: Gross Fixed Capital Formation (GFCF) increased to 10.2% in 2023-24 from 6.6% in 2022-23, driven by government spending on infrastructure.
- Inflation: Headline inflation softened to 5.4% during 2023-24 from 6.7% in the previous year.
Financial Performance:
- Income and Expenditure: RBI’s income rose by 17% to ₹2.75 lakh crore in FY24, while expenditure declined by 56% to ₹64,694 crore.
- Balance Sheet: The RBI’s balance sheet increased by 11% to ₹70.47 lakh crore, driven by higher foreign investments, gold, and loans and advances.
- Net Income: Net income increased to ₹2.11 lakh crore, largely due to higher interest from foreign securities and gains from foreign exchange transactions.
Monetary and Financial Measures:
- Sovereign Gold Bonds: Investors purchased ₹27,031 crore worth of Sovereign Gold Bonds in 2023-24, representing 44.34 tonnes of gold.
- Penalties: Monetary penalties imposed by the RBI doubled to ₹86.11 crore in FY24 for non-compliance with regulatory provisions.
- Counterfeit Notes: The number of counterfeit notes detected at the RBI rose to 17,613 pieces in FY24 from 10,465 in FY23.
Sector-Specific Insights:
- Bank Frauds: The number of bank fraud cases increased by 166% to 36,075 in FY24, with digital payments and loan portfolios being the primary sources of financial loss.
- MSPs for Crops: The Minimum Support Prices (MSPs) for both Kharif and Rabi crops ensured a minimum return of 50% over production costs.
Strategic Developments:
- Rupee Accounts Abroad: RBI allowed residents outside India to open rupee accounts to globalize the domestic currency.
- UPI Expansion: RBI and NPCI aim to expand UPI to 20 countries by FY29, with current initiatives in France, Nepal, and Sri Lanka.
- Data Centre: RBI is developing a new state-of-the-art greenfield next-generation data centre to commence operations in FY25.
- Currency Circulation: The share of the ₹500 note in the total currency circulation increased to 86.5% as of March 31, 2024.
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