INTRODUCTION:
On August 25, 2020, the Reserve Bank of India released its annual report 2019-20. The report has made it very clear to the world that the apex bank stands as a bank with the highest levels of financial resilience globally.
According to the report, the total income in 2019-20 has increased by 28.97%.
- The balance sheet size of Reserve Bank increased by 13.42%
- The total income in the year 2018-19 was Rs 1,49,672. In 2019-20, it was Rs 1,93,036.
- The expenditure decreased by 39.72%.
- The interest income of the bank increased by 44.62%
- The RBI holdings of Government Securities increased by 57.19%
- The value of bank fraud cases has increased 74%. The number of bank fraudulent cases increased to 6,800 in 2019 as compared to 5,900 in 2018.
- The Gross Non-Performing Ratio of banking system have declined to 9.1% as compared to 11.2% in March 2019.
- The currency in circulation has soared 17%. It was Rs 21.10 trillion in 2019-20.
- Till June 2019, the RBI held 618.16 metric tonnes of gold as compared to 566,23 tonnes held in June 2018.
ABOUT THIS REPORT:
The report is generated annually by the Reserve Bank of India. It analyses the working and operations of RBI and suggests measures to improve economic performance.
FUNDS OF RBI:
- The Contingency Funds of RBI reduced to Rs 1.96 lakh crore.
- It was Rs 2.32 lakh crores in 2018-19. This was mainly because RBI has changed the way of calculating its reserves based on the recommendations made by Bimal Jalan Committee.
- An Economic Capital Framework Committee was set up under former RBI Governor Bimal Jalan.
- One of the major recommendations made by the committee is that the bank should align its accounting year to April-March (fiscal year).
- The Contingency fund is a fund of emergency. The fund has been established in India under Article 267.
- In 2005, it was raised to Rs 500 crores from Rs 50 crores.
