RBI Balance Sheet Growth and Economic Outlook 2025
The Reserve Bank of India (RBI) reported growth in its balance sheet for the financial year 2024-25. The total balance sheet expanded to ₹76.25 lakh crore, marking an 8.2% increase from the previous year. This growth was boosted by substantial gains in foreign exchange transactions and a rise in gold and domestic investments. The RBI’s annual report marks the resilience of the Indian economy amid global challenges, positioning India as the fastest-growing major economy in 2025-26.
Key Financial Highlights
The RBI’s income rose by 22.77% while expenditures increased by 7.76%. The overall surplus for the year reached ₹2.69 trillion, a 27.37% increase compared to the previous year. The balance sheet growth was largely attributed to a 52.09% rise in gold holdings, a 14.32% increase in domestic investments, and a 1.70% rise in foreign investments.
Composition of Assets and Liabilities
As of March 31, 2025, domestic assets accounted for 25.73% of total assets, while foreign currency assets, gold, and loans to financial institutions made up 74.27%. On the liabilities side, increases were noted in notes issued (6.03%), revaluation accounts (17.32%), and other liabilities (23.31%).
Currency Circulation Trends
The value of banknotes in circulation increased by 6% during 2024-25. The share of ₹500 banknotes decreased slightly in value terms but remained the most circulated denomination. The withdrawal of ₹2000 banknotes continued, with 98.2% of the currency returned to the banking system. The value of coins in circulation rose by 9.6%.
Digital Currency and Counterfeit Notes
The e-rupee saw a remarkable increase of 334% in circulation. The report noted a decline in counterfeit notes for most denominations, except for ₹200 and ₹500, which saw increases of 13.9% and 37.3% respectively.
Economic Resilience and Policy Outlook
The RBI’s report indicates that the Indian economy is well-positioned for sustainable growth, supported by sound macroeconomic fundamentals. Factors such as easing supply-chain pressures and higher agricultural production contribute positively to the inflation outlook. The RBI expressed confidence in achieving a durable alignment of headline inflation to the 4% target within a 12-month horizon.
Recommendations
The RBI advised banks to manage interest rate risks effectively, given the changing economic landscape. It brought into light the importance of addressing both trading and banking book risks, especially with moderating net interest margins.
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