The size of the Reserve Bank of India’s (RBI) balance sheet increased by 2.5% for the year ended March 31, 2023. While its income for the year increased by 47.06% to ₹2.35 lakh crore, the expenditure increased by 14.05% to ₹1.48 lakh crore.
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%. However, the surplus stood at ₹99,122 crore in FY21; ₹57,127.53 crore in FY20; and ₹1,75,987.73 crore in FY19.
The RBI's annual report released today says the size of the balance sheet increased by ₹1,54,453.97 crore, i.e., 2.5% from ₹61,90,302.27 crore as on March 31, 2022 to ₹63,44,756.24 crore as on March 31, 2023.
The increase on the asset side was due to a rise in foreign investments, gold, and loans and advances by 2.31%, 15.30%, and 38.33%, respectively.
On the liability side, the expansion was due to an increase in notes issued, revaluation accounts, and other liabilities by 7.81%, 20.50%, and 79.07%, respectively.
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 ₹1,30,875.75 crore was made and transferred to Contingency Fund (CF), the RBI data shows. "No provision was made towards Asset Development Fund (ADF)."
The RBI board had this month approved the transfer of ₹87,416 crore as surplus to the central government for the accounting year 2022-23. The central bank also decided to raise the contingency risk buffer to 6% from 5.5% earlier.
The balance sheet of the Reserve Bank (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 apex bank today released its annual report for FY2022-23, saying the global growth is expected to slow down in 2023 and may remain subdued in the medium run.
"Globally, disinflation efforts are expected to take down headline inflation from 7.3 per cent to 4.7 per cent in 2023 among AEs, and from 9.8 per cent to 8.6 per cent among emerging market and developing economies," says the RBI.
It says several "shocks" tested the resilience of the Indian economy in 2022-23. On the back of sound macroeconomic policies, and other favourable economic factors, India’s growth momentum is likely to be sustained in 2023-24 in an atmosphere of "easing inflationary pressures".