During the financial year 2018-19, the emergency fund of the Reserve Bank of India (RBI) has come down by 15%. However, his income has increased by 146 percent. The total balance sheet of the Reserve Bank increased by 13.42 percent to Rs 41 lakh crore. Private and foreign investments contribute to this increase. This information was given in the annual report released by the central bank.
Significantly, the financial year of RBI is from July to June. According to the report, the Reserve Bank's emergency fund has declined by 1.96 lakh crore. The balance sheet of RBI was Rs 36.17 lakh crore as on 30 June 2018, which increased to Rs 41.09 lakh crore on 30 June 2019. Thus, it registered an increase of 13.42 percent.
The main reason for RBI's increase in assets is 57.19 percent and 5.70 percent increase in domestic and foreign investment respectively. At the same time, a total increase of 16.30 percent has been recorded in gold. However, according to experts, the actual profit will be Rs 58,000 crore after IBI gives a surplus fund of Rs 1.76 lakh crore to the government.
Income from domestic sources increased
According to the Reserve Bank report, in 2018-19, the income of the Reserve Bank increased by 146.59 percent to Rs 1.93 lakh crore, while in its last financial year, the Reserve Bank had earned only Rs 78,000 crore. In fact, during this period, the other income of the Reserve Bank increased to Rs 86,199 crore, as compared to Rs 4,410 crore last year.
The RBI report also said that income from domestic sources increased by 132.07 per cent to Rs 1,18,078 crore from Rs 50,880 crore in the last financial year.
The RBI had constituted an expert committee under the chairmanship of Bimal Jalan to review the existing ECF (Economic Capital Framework) in consultation with the Government of India. This committee recommended withdrawal of income of 52,637 crore from the contingency fund.
The annual report stated, 'Since the financial flexibility of Reserve Bank was within the desired limit, the additional risk provision of Rs 52,637 crore was withdrawn from the Contingency Fund (CF).'
After this, RBI had a total surplus fund of Rs 1,23,414 crore, which together, it will transfer a total of Rs 1,75,987 crore to the central government, out of which it has already paid Rs 28,000 crore.
The Reserve Bank of India (RBI) has recorded a shortfall of Rs 1.96 lakh crore as on 30 June 2019 as compared to the same date last year, a 15 percent decrease on a year-on-year basis. The Reserve Bank report said that the bank's cash and gold revaluation account declined, which fell from Rs 6.96 lakh crore to Rs 6.64 lakh crore.
The reduction in the emergency fund has come from giving surplus fund of Rs 52,000 crore to the government. The government has projected a dividend of Rs 90,000 crore from the Reserve Bank for the financial year 2019-20 in the budget, out of which the RBI has transferred a dividend of Rs 28,000 crore.
