The Reserve Bank of India (RBI) has reported a significant increase in its financial performance for the fiscal year 2023-24 (FY24). According to the RBI’s Annual Report, the income for FY24 rose by 17% to ₹2,75,572.32 crore, while expenditure declined by 56.3% to ₹64,694.33 crore from ₹1,48,037.04 crore in FY23.
Key Financial Highlights:
Income and Expenditure:
- Income Growth: The RBI’s income saw a substantial increase of 17%, reaching ₹2.75 lakh crore.
- Expenditure Decline: The expenditure decreased dramatically by 56.3%, totaling ₹64,694.33 crore.
Balance Sheet Expansion:
- Size Increase: The size of the RBI’s balance sheet grew by 11% to ₹70.47 lakh crore from ₹63.44 lakh crore in FY23.
- Asset Growth: The rise in assets was attributed to increased foreign investments, gold holdings, and loans and advances.
- Liabilities Expansion: On the liabilities side, the growth was due to an increase in notes issued, deposits, and other liabilities.
Net Income:
- Increase in Net Income: The net income rose to ₹2.11 lakh crore, a 17% increase compared to ₹87,420 crore in FY23.
- Foreign Exchange Gains: The RBI gained ₹83,616 crore from foreign exchange transactions.
- Interest Income from Foreign Securities: The interest income from foreign securities increased to ₹65,328 crore.
- Provision to Contingency Fund: The RBI allocated ₹42,800 crore to the contingency fund for FY24, with no provision made for the Asset Development Fund (ADF).
Asset and Liability Details:
- Asset Composition: The increase in assets was due to a rise in foreign investments (13.90%), gold (18.26%), and loans and advances (30.05%).
- Domestic vs. Foreign Assets: As of March 31, 2024, domestic assets constituted 23.31% of the total, while foreign currency assets, gold, and loans and advances to financial institutions outside India made up 76.69%. This is a shift from 26.08% and 73.92%, respectively, as of March 31, 2023.
Sovereign Gold Bonds (SGB):
- Purchases in FY24: Investors purchased ₹27,031 crore worth of Sovereign Gold Bonds in 2023-24, four times the amount purchased in 2022-23.
- Gold Quantity: These purchases represented 44.34 tonnes of gold in 2023-24, compared to 12.26 tonnes in 2022-23.
- Historical Data: Since the inception of the SGB scheme in November 2015, a total of ₹72,274 crore (146.96 tonnes) has been raised through 67 tranches.
- Investment Limits: SGBs are issued in denominations of one gram of gold and multiples thereof, with a minimum investment of one gram. The subscription limit is 4 kg for individuals and Hindu Undivided Families (HUF), and 20 kg for trusts and similar entities per fiscal year (April – March).
Conclusion:
The RBI’s Annual Report for FY24 highlights a strong financial performance, with significant increases in income and net income, alongside a substantial decrease in expenditure. The expansion of the balance sheet and the growth in foreign investments, gold holdings, and loans and advances underscore the RBI’s robust financial health. The increased participation in Sovereign Gold Bonds also reflects investor confidence in this scheme. Overall, the report showcases the RBI’s effective management and strategic focus on enhancing financial stability and growth.
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