India’s central bank saw a gain of Rs 11.1 lakh crore from foreign exchange transactions during the year versus Rs 8.36 lakh crore last year, showed the report, which was released on Thursday.
The central bank was the top seller of foreign exchange reserves in January among other Asian central banks. In September 2024, foreign exchange reserves peaked to $704 billion and the RBI is estimated to have sold over $125 billion since then, according to estimates by Nomura and DBS Bank.
Interest income from foreign securities Rs 9.70 lakh crore versus Rs 6.53 lakh crore last year.
At the 616th Meeting of the Central Board held earlier this month, the RBI officials had reviewed the global and domestic economic scenario, including risks to the outlook and had decided to transfer a surplus of Rs 2,68,590.07 crore to the Modi-led government.
Notably, the board continued to hike its CRB, which helps cover potential hits like bad loans, falling asset values, staff costs or surprise economic shocks. During the pandemic years, the RBI had maintained it at 5.5 per cent, later hiking it to 6 per cent in FY23 and 6.5 per cent in FY24.Meanwhile, 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, economists said.
