RBI reports increase in surplus transfer driven by foreign exchange gains in FY25

MUMBAI: Earnings from foreign exchange operations helped the Reserve Bank of India (RBI) report a 27% jump in its surplus transfer to the central govt for FY25, with revenue coming from both foreign currency assets as well as profits from the sale of dollars in the Indian markets.

The surplus, also termed the available balance for transfer, rose to Rs 2.7 lakh crore in FY25 from Rs 2.1 lakh crore in FY24.Overall interest income rose by 12% to Rs 2.11 lakh crore, while gains from foreign exchange transactions contributed to a 47% jump in other income, which stood at Rs 1.28 lakh crore. The RBI’s total income for the year increased by 23% to Rs 3.38 lakh crore, mainly driven by a 29% rise in interest earnings from overseas assets to Rs 1.33 lakh crore. However, part of the money was used by the RBI to strengthen its financial buffers. The Contingency Fund rose by 27% to Rs 5.42 lakh crore, following a Rs 44,862 crore provision to align its Available Realised Equity (ARE) with the 7.5% target under the Economic Capital Framework. The ARE rose nearly 25% to Rs 5.72 lakh crore, while the Asset Development Fund remained unchanged at Rs 22,975 crore.Domestic earnings, however, declined. Interest income from local investments dropped nearly 10% to Rs 77,327 crore, largely due to lower returns from rupee securities. Other income from domestic operations fell by 20% to Rs 2,143 crore. Total expenditure went up by 8% to Rs 69,714 crore, mainly due to higher costs for printing currency and employee benefits.