RBI transfers its entire Rs 52,700-crore surplus to government

KOLKATA: The Reserve Bank of India has transferred its entire surplus of Rs 52,679 crore to the government after a committee suggested that it has enough contingency reserves even as the central bank's gross income in its last fiscal year fell 13% as it earned less on interest and commissions.

The central bank's balance sheet size grew by about 10% during the year ending June 30, 2014, on account of 15% rise in foreign currency assets, RBI said its the latest annual report published Thursday. The balance sheet rose to Rs 26,24,400 crore at the end of June from Rs 23,90,700 crore a year back.

RBI's balance sheet largely reflects its activities that is carried out in pursuing currency issue function and its monetary and reserve management policy objectives. The asset side growth was mainly due to rise in foreign currency assets and impact of depreciation of the US dollar against other major currencies.

The technical panel headed by YH Malegam recommended that since the balances in the contingency reserve and the asset development reserve are currently in excess of the buffers needed, there was no need to make any further transfers to these kitties.

Accordingly, RBI has not transferred anything to these reserves this year, and the entire surplus was transferred to the central government making it the largest ever surplus transfer by the central bank.