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Home / News / India /  RBI balance sheet up 30% year on year

Mumbai: The balance sheet size of the Reserve Bank grew 30.02% to 53.35 lakh crore during fiscal year 2019-20 owing to rise in domestic and foreign investments. Last year, the balance sheet stood at 41.03 lakh crore.

The increase on the asset side was due to a rise in domestic and foreign investments by 18.40% and 27.28%, respectively, surge in loans and advances by 245.76% and jump in gold by 52.85%.

Domestic assets constituted 28.75%, while the foreign currency assets and gold (including gold deposit and gold held in India) constituted 71.25% of total assets as on 30 June, 2020.

On the liability side, the increase was due to 21.5% rise in notes issued, 30.5% surge in other liabilities and provisions, and 53.7% jump in deposits.

A provision of 73615 crore was made and transferred to the contingency fund.

The transfer to the contingency fund is in line with the recommendations of the Bimal Jalan committee, which had sought a transfer of 5.5% of the RBI’s balance sheet to the contingency fund.

The net interest income from LAF/MSF operations decreased from 1181 lakh crore in fiscal year 2019 to Rs(-)129.04 billion in fiscal year 2020 due to absorption of surplus liquidity in the banking system leading to net interest outgo under LAF/ MSF.

“The higher banking system surplus was due to pro-active liquidity management operations carried out by the Reserve Bank to augment system-level liquidity and to channelise liquidity to specific sectors facing funding constraints on account of disruptions caused due to COVID-19 pandemic," said RBI’s annual reort said

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