 "A security guard stands in the lobby of the Reserve Bank of India (RBI) headquarters in Mumbai")
The Reserve Bank of India (RBI)'s balance sheet expanded 10.1 per cent to Rs 28,89,159 crore for the year ended June 2015 (FY15) as against Rs 26,24,367 crore the previous year. The growth was mainly due to a rise in foreign currency assets (FCA).
The share of FCA grew substantially from 67 per cent in June 2014 to 73.9 per cent in June 2015. In case of domestic assets, the situation was just the opposite. Domestic assets (including gold) constituted 26.07 per cent in June 2015, down from 33 per cent a year ago, according to RBI's annual report released on Thursday.
RBI's financial year runs from July to June.
The increase on the liability side was mainly due to a rise in notes in circulation and deposits. RBI said, as in the previous year (FY14), no amount was transferred to the Contingency Fund. However, the central bank transferred Rs 1,000 crore to the asset development fund for infusing capital into the National Housing Bank (NHB).
The surplus of Rs 65,896 crore was transferred to the central government.
The balance in the currency and gold revaluation account (CGRA) dipped by 2.27 per cent from Rs 5,72,131 crore in June 2014 to Rs 5,59,100 crore at end of June 2015, on appreciation of the dollar and fall in the value of gold.
Keeping with best international practices, unrealised gains and losses on the valuation of FCA and gold are not taken to the income account. They are recorded under the balance sheet head as CGRA. It represents the net balance of unrealised gains arising out of valuation of FCA and gold. Hence, the balance varies with the size of asset base, movement in exchange rate and price of gold.
Investment Revaluation Account (IRA)
The foreign dated securities are marked to market on the last business day of each month and the unrealised gains/losses arising there from are transferred to the IRA.
The balance in the IRA as on June 30, 2014, declined to Rs 3,214 crore as in June 30, 2015, from Rs 3,791 crore as on June 30, 2014.
