Mint Quick Edit | What gave RBI its record surplus
₹2.1 trillion surplus, up from ₹874.2 billion in 2022-23. Also read: Mint Explainer: What does RBI’s record dividend payout to the government mean? Cumulative expenses dropped to ₹646.94 billion from ₹1.48 trillion, largely thanks to lower provisions, which stood at ₹428.2 billion in 2023-24 as against ₹1.31 trillion in 2022-23.
While the contingency fund got raised, the cut seems to have come in the asset development fund, for which no provision was made. This fund essentially has money for investment in subsidiaries to meet internal capital expenditure.
On the other hand, its income got a boost from interest earned from foreign securities and deposits—the former climbed to ₹653.28 billion from ₹436.49 billion, while the latter surged to ₹376.21 billion from ₹164.2 billion. Interest rates at peaks overseas may explain this surge.
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