Reserve Bank of India (RBI) transferred a Surplus of Rs 16010 crore to the Union Government

The Reserve Bank of India in its annual report released on 23 August 2012 mentioned that it transferred a surplus of Rs 16010 crore to the union government during 2011-12 which is 6.7% more than Rs 15,009 crore transferred in 2010-11.The central bank’s gross income increased by 43.4% to Rs 53176 crore in 2011-12. Its expenditure however rose by 17.1% to Rs 10137 core. After transfers to the contingency reserve, the asset development reserve and the four statutory funds, Rs 16010 crore was allocated for transfer to the centre.

The Reserve Bank recorded a sharp rise in its income from domestic resources as it aggressively bought bonds through its open market operations. However, the lower interest rates in the advanced markets led to a dip in income from foreign currency assets for the third consecutive year.

The earnings from domestic sources increased by Rs 17446 crore to Rs 33366 crore in 2011-12, an increase of 109.6% earned from liquidity adjustment facility (LAF) operations, higher coupon receipts on an increased portfolio of government securities and profit on sale of securities.

The Reserve Bank’s earnings from the deployment of foreign currency assets (FCA) and gold fell 6.3% to Rs 9810 crore in 2011-12. The rate of earnings on FCA and gold was lower at 1.47% in 2011-12, compared with 1.74% in 2010-11 because of the low interest rates in international markets.