Mumbai: The Reserve Bank of India (RBI) reported a 27.5% rise in net income for FY25. The net income of RBI reached Rs 2.69 trillion ($31.4 billion) or Rs 2.69 lakj crore. This growth was driven by a surge in gains from foreign exchange transactions and interest earned on foreign securities.
Forex transaction gains jumped to Rs 1.11 trillion in FY25, up from Rs 83,616 crore in the previous fiscal. Interest income from foreign securities also surged, reaching Rs 97,007 crore, compared to Rs 65,328 crore in FY24. The RBI’s total balance sheet expanded 8.2% year-on-year to Rs 76.25 trillion.
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‘The surge in dollar selling during FY25 was a result of a negative balance of payments. In FY26, we expect the balance of payments to turn slightly positive, which should moderate the pace of dollar selling,’ said Gaura Sen Gupta, Chief Economist at IDFC First Bank.
Last week, the RBI board approved a record surplus transfer of Rs 2.69 trillion to the government for FY25. The dividend transfer by the RBI is expected to ease pressure on the exchequer as the Centre continues its aggressive capital expenditure and sustains tax relief measures announced in the Budget for FY26. Moreover, it could help the Centre shrink the fiscal gap. Plus, spending from the government would pump liquidity into the banking system, and the liquidity would be visible from early July
The RBI’s total expenditure for FY25 rose 7.76% to Rs 69,714 crore. This increase was mainly attributed to higher interest payments, employee-related costs, and expenses related to printing currency.
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