Team News Riveting
The Reserve Bank of India’s had registered a growth of about 30 percent in its balance sheets in the fiscal 2020.
A report of RBI said the balance sheet grew about 30 percent to Rs 53.3 lakh crore in the fiscal year 2020, from previous year’s Rs 41 lakh crore. Foreign currency assets and gold constituted 71.25 percent of the RBI’s total assets while domestic assets constituted the rest.
The increase on the asset side was due to increase in domestic and foreign investments by 18.4 per cent and 27.3 per cent. The loans and advances grew by 245.8 per cent while gold recorded 52.9 percent growth, the Reserve Bank said.
On the liability side, the increase was due to hike in the notes issued, other liabilities and provisions, and deposits by 21.5 percent, 30.5 percent and 53.7 percent, respectively.
The RBI’s income for the year stood at Rs 1.5 lakh crore while expenditure stood at Rs 92,540 crore (inclusive of Rs 73,615 crore towards transfer to a contingency fund). The surplus of Rs 57,128 crore was transferred to the central government.
The transfer to the contingency fund is in the line with the recommendations of the Bimal Jalan committee, which had sought a transfer of 5.5 percent of the RBI’s balance sheet to the contingency fund.
Compared to this, the central bank had posted income of 1.93 lakh crore and expenditure of Rs 17,045 crore in the year before. But the previous year’s income included a write back of excess provision from contingency fund amounting to Rs 52,637 crore.
