Summary of RBI’s Financial Performance and Projections (FY24)

  • May 31, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Summary of RBI’s Financial Performance and Projections (FY24)

Sub: Economy

Sub: Monetary Policy

Key Financial Highlights:

  • Income and Expenditure:
    • Income: Increased by 17% to ₹2,75,572.32 crore.
    • Expenditure: Decreased by 56.3% to ₹64,694.33 crore from ₹1,48,037.04 crore in FY23.
    • Transferable Surplus: Ended the year with a surplus of ₹2,10,873.99 crore, up from ₹87,416.22 crore in the previous year.
  • Income Sources:
    • Forex Gains: ₹83,615.86 crore.
    • Interest Income from Foreign Securities: ₹65,327.93 crore.
  • Balance Sheet:
    • Increase: Grew by ₹7,02,946.97 crore (11%) to ₹70,47,703.21 crore from ₹63,44,756.24 crore in FY23.
    • Asset Side:
      • Foreign Investments: Increased by 13.9%.
      • Gold: Increased by 18.26%.
      • Loans and Advances: Increased by 30.05%.
    • Liabilities Side:
      • Notes Issued: Increased by 3.88%.
      • Deposits: Increased by 27%.
      • Other Liabilities: Increased by 92.57%.
    • Asset Composition:
      • Domestic Assets:31% of total assets.
      • Foreign Currency Assets, Gold, Loans to Foreign Financial Institutions:69% of total assets.
      • Contingency Fund: ₹42,819.91 crore provision transferred.

 Economic Outlook:

  • GDP Growth: Projected at 7% for FY25.
  • Macroeconomic Fundamentals:
    • Sustained strengthening of macroeconomic fundamentals.
    • Robust financial and corporate sectors.
    • Resilient external sector.
  • Government Policies:
    • Continued focus on capital expenditure (capex).
    • Pursuit of fiscal consolidation.
    • Optimism in consumer and business sectors, supporting investment and consumption demand.
  • Inflation:
    • Headline inflation expected to ease towards the target.
    • Revitalization of consumption demand, especially in rural areas.
  • External Sector:
    • Forex reserves acting as buffers against global economic spillovers.
  • Risks:
    • Geopolitical tensions and geoeconomic fragmentation.
    • Global financial market volatility.
    • International commodity price movements.
    • Erratic weather developments.

These highlights reflect a robust financial performance by the RBI in FY24, underpinned by significant income growth, reduced expenditure, and an expanded balance sheet. The outlook for FY25 remains positive with expected GDP growth and stable inflation, although several external risks persist.

economy Summary of RBI's Financial Performance and Projections (FY24)