ANNUAL REPORT 2022-23

RESERVE BANK OF INDIA

BALANCE SHEET AS ON MARCH 31, 2023
(Amount in ` crore)

Liabilities Schedule 2021-22 2022-23 Assets Schedule 2021-22 2022-23

Capital 5.00 5.00 Assets of Banking Department

(BD)

Reserve Fund 6,500.00 6,500.00 Notes, Rupee Coin, Small Coin 6 17.13 9.50

Other Reserves 1 236.00 238.00 Gold-BD 7 1,96,864.38 2,30,733.95

Deposits 2 17,33,787.56 13,54,217.22 Investments-Foreign-BD 8 11,41,127.75 10,08,993.26

Risk Provisions Investments-Domestic-BD 9 14,88,815.96 14,06,422.89

Contingency Fund 3,10,986.94 3,51,205.69 Bills Purchased and Discounted 0.00 0.00

Asset Development Fund 22,974.68 22,974.68 Loans and Advances 10 2,08,792.85 2,88,813.53

Revaluation Accounts 3 9,34,544.00 11,26,088.12 Investment in Subsidiaries 11 2,063.60 2,063.60

Other Liabilities 4 75,547.53 1,35,282.86 Other Assets 12 46,900.04 59,474.84

Liabilities of Issue Department Assets of Issue Department (ID)

(As backing for Notes Issued)

Notes Issued 5 31,05,720.56 33,48,244.67 Gold-ID 7 1,25,348.98 1,40,765.60

Rupee Coin 508.29 277.29

Investments-Foreign-ID 8 29,79,863.29 32,07,201.78

Investments-Domestic-ID 9 0.00 0.00

Domestic Bills of Exchange and 0.00 0.00

other Commercial Papers

31,05,720.56 33,48,244.67

Total Liabilities 61,90,302.27 63,44,756.24 Total Assets 61,90,302.27 63,44,756.24

Charulatha S. Kar T. Rabi Sankar M. Rajeshwar Rao M. D. Patra M. K. Jain Shaktikanta Das
Chief General Manager-In-Charge Deputy Governor Deputy Governor Deputy Governor Deputy Governor Governor

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

RESERVE BANK OF INDIA

INCOME STATEMENT FOR THE YEAR ENDED MARCH 31, 2023
(Amount in ` crore)

INCOME Schedule 2021-22 2022-23

Interest 13 95,088.76 1,43,073.11
Other Income 14 65,023.37 92,384.15
Total 1,60,112.13 2,35,457.26
EXPENDITURE
Printing of Notes 4,984.80 4,682.80
Expenditure on Remittance of Currency 82.95 118.19
Agency Charges 15 4,400.62 4,068.62
Employee Cost 3,869.43 6,003.93
Interest 1.77 1.92
Postage and Telecommunication Charges 140.09 191.18
Printing and Stationery 22.58 26.97
Rent, Taxes, Insurance, Lighting, etc. 145.56 161.47
Repairs and Maintenance 109.17 126.21
Directors’ and Local Board Members’ Fees and Expenses 1.48 4.15
Auditors’ Fees and Expenses 6.49 7.44
Law Charges 14.03 16.88
Depreciation 280.99 303.18
Miscellaneous Expenses 1,073.71 1,448.35
Provisions 1,14,667.01 1,30,875.75
Total 1,29,800.68 1,48,037.04
Available Balance 30,311.45 87,420.22
Less:
(a) Contribution to:
(i) National Industrial Credit (Long Term Operations) Fund 1.00 1.00
(ii) National Housing Credit (Long Term Operations) Fund 1.00 1.00
(b) Transferable to NABARD:
(i) National Rural Credit (Long Term Operations) Fund1 1.00 1.00
(ii) National Rural Credit (Stabilisation) Fund 1
1.00 1.00
(c) Others
Surplus payable to the Central Government 30,307.45 87,416.22

1. These funds are maintained by the National Bank for Agriculture and Rural Development (NABARD).

Charulatha S. Kar T. Rabi Sankar M. Rajeshwar Rao M. D. Patra M. K. Jain Shaktikanta Das
Chief General Manager-In-Charge Deputy Governor Deputy Governor Deputy Governor Deputy Governor Governor

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 ANNUAL REPORT 2022-23

SCHEDULES FORMING PART OF BALANCE SHEET AND INCOME STATEMENT

(Amount in ` crore)

2021-22 2022-23
Schedule 1: Other Reserves
(i) National Industrial Credit (Long Term Operations) Fund 31.00 32.00
(ii) National Housing Credit (Long Term Operations) Fund 205.00 206.00
Total 236.00 238.00
Schedule 2: Deposits
(a) Government
(i) Central Government 5,000.04 5,000.93
(ii) State Governments 42.45 42.49
Sub total 5,042.49 5,043.42
(b) Banks
(i) Scheduled Commercial Banks 8,23,632.33 8,68,939.67
(ii) Scheduled State Co-operative Banks 7,592.50 8,100.09
(iii) Other Scheduled Co-operative Banks 10,871.51 11,530.78
(iv) Non-Scheduled State Co-operative Banks 5,089.60 5,177.27
(v) Other Banks 29,540.22 36,729.16
Sub total 8,76,726.16 9,30,476.97
(c) Financial Institutions outside India
(i) Repo Borrowing-Foreign 74,438.88 1,00,952.11
(ii) Reverse Repo Margin-Foreign 1,289.10 1,255.08
Sub total 75,727.98 1,02,207.19
(d) Others
(i) Administrators of RBI Employee PF A/c 4,503.16 4,642.35
(ii) Depositor Education and Awareness Fund 48,262.85 62,224.89
(iii) Balances of Foreign Central Banks 491.28 1,059.02
(iv) Balances of Indian Financial Institutions 1,007.61 6,796.52
(v) Balances of International Financial Institutions 542.64 507.06
(vi) Mutual Funds 1.34 1.34
(vii) Others 7,21,482.05 2,41,258.46
Sub total 7,76,290.93 3,16,489.64
Total 17,33,787.56 13,54,217.22
Schedule 3: Revaluation accounts
(i) Currency and Gold Revaluation Account (CGRA) 9,13,389.29 11,24,733.16
(ii) Investment Revaluation Account-Foreign Securities (IRA-FS) 0.00 0.00
(iii) Investment Revaluation Account-Rupee Securities (IRA-RS) 18,577.81 0.00
(iv) Foreign Exchange Forward Contracts Valuation Account (FCVA) 2,576.90 1,354.96
Total 9,34,544.00 11,26,088.12
Schedule 4: Other Liabilities
(i) Provision for Forward Contracts Valuation Account (PFCVA) 0.00 0.00
(ii) Provision for payables 3,281.08 3,665.97
(iii) Gratuity and Superannuation Fund 28,872.79 30,892.24
(iv) Surplus payable to the Central Government 30,307.45 87,416.22
(v) Bills Payable 0.14 0.11
(vi) Miscellaneous 13,086.07 13,308.32
Total 75,547.53 1,35,282.86
Schedule 5: Notes Issued
(i) Notes held in the Banking Department 17.07 9.43
(ii) Notes in circulation 31,05,703.49 33,48,218.85
(iii) CBDC-W 0.00 10.69
(iv) CBDC-R 0.00 5.70
Total 31,05,720.56 33,48,244.67

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

2021-22 2022-23

Schedule 6: Notes, Rupee Coin, Small Coin

(i) Notes 17.07 9.43
(ii) Rupee Coin 0.05 0.06
(iii) Small Coin 0.01 0.01

Total 17.13 9.50

Schedule 7: Gold
(a) Banking Department
(i) Gold 1,92,169.72 2,04,401.58
(ii) Gold Deposit 4,694.66 26,332.37
Sub Total 1,96,864.38 2,30,733.95
(b) Issue Department 1,25,348.98 1,40,765.60

Total 3,22,213.36 3,71,499.55

Schedule 8: Investments-Foreign
(i) Investments-Foreign-BD 11,41,127.75 10,08,993.26
(ii) Investments-Foreign-ID 29,79,863.29 32,07,201.78

Total 41,20,991.04 42,16,195.04

Schedule 9: Investments-Domestic
(i) Investments-Domestic-BD 14,88,815.96 14,06,422.89
(ii) Investments-Domestic-ID 0.00 0.00

Total 14,88,815.96 14,06,422.89

Schedule 10: Loans and Advances

(a) Loans and Advances to:
(i) Central Government 0.00 48,677.00
(ii) State Governments 1,666.56 791.72
Sub total 1,666.56 49,468.72
(b) Loans and Advances to:
(i) Scheduled Commercial Banks 94,365.75 1,12,731.34
(ii) Scheduled State Co-operative Banks 0.00 0.00
(iii) Other Scheduled Co-operative Banks 0.00 0.00
(iv) Non-Scheduled State Co-operative Banks 0.00 0.00
(v) NABARD 23,010.10 0.00
(vi) Others 14,506.94 24,485.36
Sub total 1,31,882.79 1,37,216.70
(c) Loans and Advances to Financial Institutions outside India
(i) Reverse Repo Lending-Foreign 75,190.78 1,01,968.98
(ii) Repo Margin-Foreign 52.72 159.13
Sub total 75,243.50 1,02,128.11

Total 2,08,792.85 2,88,813.53

Schedule 11: Investment in Subsidiaries/Associates

(i) Deposit Insurance and Credit Guarantee Corporation (DICGC) 50.00 50.00
(ii) Bharatiya Reserve Bank Note Mudran (P) Ltd. (BRBNMPL) 1,800.00 1,800.00
(iii) Reserve Bank Information Technology (P) Ltd. (ReBIT) 50.00 50.00
(iv) National Centre for Financial Education (NCFE) 30.00 30.00
(v) Indian Financial Technology & Allied Services (IFTAS) 33.60 33.60
(vi) Reserve Bank Innovation Hub (RBIH) 100.00 100.00

Total 2,063.60 2,063.60

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 ANNUAL REPORT 2022-23

2021-22 2022-23
Schedule 12: Other Assets
(i) Fixed Assets (net of accumulated depreciation) 882.46 981.57
(ii) Accrued income (a + b) 41,769.61 55,217.80
a. on loans to employees 366.08 383.70
b. on other items 41,403.53 54,834.10
(iii) Swap Amortisation Account (SAA) 0.00 0.00
(iv) Revaluation of Forward Contracts Account (RFCA) 2,576.90 1,354.96
(v) Miscellaneous 1,671.07 1,920.51
Total 46,900.04 59,474.84
Schedule 13: Interest
(a) Domestic Sources
(i) Interest on holding of Rupee Securities 96,396.42 96,516.05
(ii) Net Interest on LAF Operations -35,501.29 -9,068.41
(iii) Interest on SDF 0.00 -7,444.71
(iv) Interest on MSF Operations 37.63 361.02
(v) Interest on Loans and Advances 1,501.82 2,411.98
Sub total 62,434.58 82,775.93
(b) Foreign Sources
(i) Interest Income from Foreign Securities 31,559.33 43,649.26
(ii) Net Interest on Repo/Reverse Repo transactions 42.32 228.25
(iii) Interest on Deposits 1,052.53 16,419.67
Sub total 32,654.18 60,297.18
Total 95,088.76 1,43,073.11
Schedule 14: Other Income
(a) Domestic Sources
(i) Exchange 0.00 0.00
(ii) Discount 403.76 0.00
(iii) Commission 3,058.09 3,469.14
(iv) Rent Realised 11.38 8.99
(v) Profit/Loss on sale and redemption of Rupee Securities 6,028.19 -222.86
(vi) Depreciation on Rupee Securities inter portfolio transfer -20.07 -110.67
(vii) Amortisation of premium/discount on Rupee Securities -1,717.97 -2,264.19
(viii) Profit/Loss on sale of Bank's property 6.72 2.45
(ix) Provision no longer required and Miscellaneous Income 325.09 -330.07
Sub total 8,095.19 552.79
(b) Foreign Sources
(i) Amortisation of premium/discount on Foreign Securities -15,286.09 -9,972.25
(ii) Profit/Loss on sale and redemption of Foreign Securities 3,002.39 -1,740.59
(iii) Exchange gain/loss from Foreign Exchange transactions 68,990.55 1,03,308.35
(iv) Miscellaneous Income 221.33 235.85
Sub total 56,928.18 91,831.36
Total 65,023.37 92,384.15
Schedule 15: Agency Charges
(i) Agency Commission on Government Transactions 3,858.95 3,873.06
(ii) Underwriting Commission paid to the Primary Dealers 486.95 107.47
(iii) Sundries (Handling charges and turnover commission paid to banks for Relief/ 12.29 20.98
Savings Bonds subscriptions; SBLA etc.)
(iv) Fees paid to the External Asset Managers, Custodians, Brokers, etc. 42.43 67.11
Total 4,400.62 4,068.62

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

STATEMENT OF SIGNIFICANT ACCOUNTING Banking Department, and the assets of the Issue
POLICIES FOR THE YEAR ENDED MARCH Department shall not be subject to any liability
31, 2023 other than the liabilities of the Issue Department.
The RBI Act, 1934 requires that the assets of
(a) General
the Issue Department shall consist of gold coins,
1.1 Among other things, the Reserve Bank of gold bullion, foreign securities, rupee coins and
India was established under the Reserve Bank of rupee securities to such aggregate amount as is
India Act, 1934 (the RBI Act, 1934) “to regulate the not less than the total of the liabilities of the Issue
issue of Bank notes and the keeping of reserves Department. The RBI Act, 1934 requires that the
with a view to securing monetary stability in India liabilities of the Issue Department shall be an
and generally to operate the currency and credit amount equal to the total of the amount of the
system of the country to its advantage”. currency notes of the Government of India and
1.2 The main functions of the Reserve Bank are: Bank notes for the time being in circulation.

a) Issue of Bank notes and circulation of (b) Significant Accounting Policies

coins; 2.1 Convention
b) Acts as monetary authority and The financial statements are prepared in
formulates, implements and monitors accordance with the RBI Act, 1934 and the
the monetary policy, including acting as notifications issued thereunder and, in the form,
the Lender of Last Resort; prescribed by the Reserve Bank of India General
c) Regulation and supervision of the Regulations, 1949. These are based on historical
cost except where it is modified to reflect
financial system;
revaluation and/or amortisation. The accounting
d) Regulation and supervision of the policies followed in preparing the financial
payment and settlement systems; statements are consistent with those followed in
e) Acts as manager of foreign exchange; the previous year unless otherwise stated.

f) Maintaining and managing the country’s 2.2 Revenue Recognition

foreign exchange reserves; a) Income and expenditure are recognised on
g) Acting as the banker to banks and the accrual basis except penal interest charged
governments; from banks which is accounted for only when
there is certainty of realisation. Dividend
h) Acting as the debt manager of the
income on shares is recognised on accrual
governments;
basis when the right to receive the same is
i) Developmental functions to support established.
national objectives.
b) Balances unclaimed and outstanding
1.3 The RBI Act, 1934 requires that the issue of for more than three clear consecutive
Bank notes should be conducted by the Reserve accounting years in certain transit accounts
Bank in an Issue Department which shall be including Drafts Payable Account, Payment
separated and kept wholly distinct from the Orders Account, Sundry Deposit Account-

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 ANNUAL REPORT 2022-23

Miscellaneous-BD, Remittance Clearance Foreign securities, other than Treasury Bills

Account, Earnest Money Deposit Account (T-Bills), Commercial Papers and certain ‘Held
and Security Deposit Account are reviewed to Maturity’ securities [such as investments in
and written back to income. Claims, if any, notes issued by the International Monetary
are considered and charged against income Fund and bonds issued by India Infrastructure
in the year of payment. Finance Company (IIFC), UK which are valued
at cost] are marked-to-market on a daily
c) Income and expenditure in foreign currency
basis. Unrealised gains/losses on revaluation
are recorded at the exchange rates prevailing
are recorded in the ‘Investment Revaluation
on the day.
Account-Foreign Securities’ (IRA-FS). Credit
d) Exchange gains/losses on sale of foreign balance in IRA-FS is carried forward to the
currencies and gold are accounted for using subsequent year. Debit balance, if any, at
the weighted average cost method for arriving the end of the year in IRA-FS is charged to
at the cost. the Contingency Fund (CF) and the same
2.3 Gold & Foreign Currency Assets and is reversed on the first working day of the
Liabilities following accounting year.

Transactions in gold & foreign currency assets Foreign T-Bills and Commercial Papers
and liabilities are accounted for on settlement date are carried at cost as adjusted by daily
basis. amortisation of discount/premium. Premium
or discount on foreign securities is amortised
a) Gold
daily. Profit/loss on sale of foreign securities
Gold (including gold deposit) is revalued is recognised with respect to the amortised
on a daily basis at ninety (90) per cent of book value.
the London Bullion Market Association
c) Forward/Swap Contracts
(LBMA) gold price in US dollar and Rupee-
US dollar market exchange rate. Unrealised Forward contracts entered into by the Reserve
valuation gains/losses are accounted for in Bank are revalued on a half yearly basis.
the Currency and Gold Revaluation Account While mark-to-market net gain is credited to
(CGRA). the ‘Foreign Exchange Forward Contracts
Valuation Account’ (FCVA) with contra debit
b) Foreign Currency Assets and Liabilities
to ‘Revaluation of Forward Contracts Account’
All foreign currency assets and liabilities (RFCA), mark-to-market net loss is debited
(excluding foreign currency received under to FCVA with contra credit to the ‘Provision
swaps that are in the nature of repos for Forward Contracts Valuation Account’
and contracts where the rates are fixed (PFCVA). On maturity of the contract, the
contractually) are translated on a daily basis actual gain or loss is recognised in the income
at market exchange rates prevailing on the account and the unrealised gains/losses
day. Unrealised gains/losses arising from previously recorded in the FCVA, RFCA and
such translation of foreign currency assets PFCVA are reversed. At the time of half yearly
and liabilities are accounted for in the CGRA. revaluation, the balance in FCVA and RFCA

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

or PFCVA as on that day is reversed and Rate Swaps and Overnight Indexed Swaps
fresh revaluation is done for all outstanding undertaken as part of Reserve Management
forward contracts. operations are marked-to-market periodically
and the resultant gain/loss is booked in
Debit balance in FCVA, if any, on the balance
income account.
sheet date, is charged to the CF and reversed
on the first working day of the following year. f) Security Lending Transactions
The balance in RFCA and PFCVA represents The Reserve Bank participates in Security
net unrealised gains and losses, respectively, Lending transactions as part of Reserve
on valuation of forward contracts. Management operations. The securities
In case of swaps at off-market rates that are lent remain a part of the Reserve Bank’s
in the nature of repo, the difference between Investments and continue to be amortised,
the future contract rate and the rate at which accrue interest and are marked-to-market.
the contract is entered into is amortised 2.4 Transactions in Exchange Traded
over the period of the contract and recorded Currency Derivatives (ETCD)
in the income account with contra in ‘Swap
The ETCD transactions undertaken by the
Amortisation Account’ (SAA). The amounts
Reserve Bank as part of its intervention
recorded in the SAA are reversed on maturity
operations are marked-to-market on a daily basis
of the underlying contracts. Further, amounts
and the resultant gain/loss is booked in income
received under these swaps are not subject
account.
to periodic revaluation.
2.5 Domestic Investments
While FCVA forms part of ‘Revaluation
Accounts’, PFCVA forms part of ‘Other a) Rupee securities and oil bonds, except T-Bills
Liabilities’ and RFCA and SAA forms part of and those mentioned in (d), are marked-to-
‘Other Assets’. market as on the last business day of each
week ending Friday and the last business
d) Repurchase Transactions day of each month. The unrealised gains/
The Reserve Bank participates in foreign losses on revaluation are accounted for in
Repurchase transactions (Repo and Reverse ‘Investment Revaluation Account-Rupee
Repo) as part of Reserve Management Securities’ (IRA-RS). Credit balance in
operations. Repo transactions are treated IRA-RS is carried forward to the following
as borrowing of foreign currencies and are accounting year. Debit balance, if any, at the
shown under ‘Deposits’, whereas Reverse end of the year in IRA-RS is charged to the CF
Repo transactions are treated as lending and the same is reversed on the first working
of foreign currencies and are shown under day of the following accounting year. On sale/
‘Loans and Advances’. redemption of rupee securities/oil bonds,
valuation gain/loss thereof, lying in IRA-RS,
e) Transactions in Derivatives
is transferred to income account. Rupee
Transactions in derivatives like Interest securities and oil bonds are also subjected to
Rate Futures, Currency Futures, Interest daily amortisation.

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 ANNUAL REPORT 2022-23

b) T-Bills are valued at cost. is calculated on monthly pro-rata basis at the

applicable rate.
c) Investments in shares of subsidiaries are
valued at cost. b) Individual items of computer software costing
`1 lakh and above are capitalised and
d) Oil bonds and rupee securities earmarked
depreciation is calculated on monthly pro-
for various staff funds [like Gratuity and
rata basis at applicable rates.
Superannuation Fund, Provident Fund, Leave
Encashment Fund, Medical Assistance Fund c) Depreciation on fixed assets acquired and
(MAF)], Depositor Education and Awareness capitalised during the accounting year would
(DEA) Fund and Payments Infrastructure be reckoned on a monthly pro-rata basis
Development Fund (PIDF) are treated as from the month of capitalisation and effected
‘Held to Maturity’ and are held at amortised on a half yearly basis at prescribed rates
cost. depending upon the useful life of the assets
applied.
e) Transactions in domestic investment are
accounted for on settlement date basis. d) Depreciation on the following fixed assets is
provided on a straight-line basis depending
2.6 Liquidity Adjustment Facility (LAF) Repo/
on the useful life of an asset in the following
Reverse Repo, Marginal Standing Facility
manner:
(MSF) and Standing Deposit Facility (SDF)
Asset Category Useful life
Repo transactions under LAF and MSF are (Rate of Depreciation)
treated as lending and are accordingly being 1 2

shown under ‘Loans and Advances’ whereas Electrical installations, UPS, Motor 5 years
Vehicles, Furniture, Fixtures, CVPS/ (20 per cent)
Reverse Repo transactions under LAF and SDF SBS Machines, etc.
are being treated as deposits and shown under Computers, Servers, Micro- 3 years
processors, Printers, Software, (33.33 per cent)
‘Deposits-Others’.
Laptops, e-book reader/i-Pad, etc.
2.7 Fixed Assets
e) Depreciation is provided on half year-end
Fixed Assets are stated at cost less depreciation balances of fixed assets on monthly pro-rata
except art and paintings and freehold land which basis. In case of additions/deletions of assets,
are held at cost. depreciation is calculated on monthly pro-rata
2.7.1 Fixed Assets other than Land and basis including the month of addition/deletion
Buildings of such assets.

a) Fixed Assets, costing up to `1 lakh (except f) Depreciation on subsequent expenditure:

easily portable electronic assets like laptop/ i. Subsequent expenditure incurred on an
e-book reader) are charged to income in the existing fixed asset which has not been
year of acquisition. Easily portable electronic fully depreciated in the books of accounts,
assets, such as laptops, etc. costing more is depreciated over the remaining useful
than `10,000 are capitalised and depreciation life of the principal asset;

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

ii. Subsequent expenditure incurred on • Buildings which are in use but have
modernisation/addition/overhauling been identified for demolition in
of an existing fixed asset, which has future or will be discarded in future:
already been fully depreciated in the The value in use of such buildings
books of accounts, is first capitalised is the aggregate of depreciation
and thereafter depreciated fully in the for the future period up to the date
year in which the expenditure is incurred. it is expected to be discarded/
2.7.2 Land and Buildings: The accounting demolished. The difference between
treatment in respect of land and buildings is as the book value and aggregate of
follows: depreciation so arrived at is charged
as depreciation.
a) Land
• Buildings which have been
i. Land acquired on leasehold basis for a
discarded/vacated: These buildings
period of more than 99 years is treated
are shown at realisable value (net
as if it is on a perpetual lease basis.
selling price, if the asset is likely
Such leases are considered as freehold
to be sold in future) or scrap value
properties and accordingly, not subjected
less demolition cost (if it is to be
to amortisation.
demolished). If the resultant amount
ii. Land acquired on lease up to 99 years is is negative, then the carrying
amortised over the period of the lease. value of such buildings is shown
iii. Land acquired on a freehold basis is not at `1. The difference between the
subject to any amortisation. book value and realisable value
(net selling price)/scrap value
b) Buildings
less demolition cost is charged as
i. The life of all buildings is assumed as depreciation.
thirty years and depreciation is charged
2.8 Employee Benefits
on a ‘straight-line’ basis over a period
of thirty years. In respect of buildings a) The Reserve Bank contributes monthly
constructed on lease hold land (where at a determined rate to Provident Fund
the lease period is less than thirty years) for the eligible employees and these
depreciation is charged on a ‘straight- contributions are charged to income in
line’ basis over the lease period of the the year to which it relates.
land. b) Other liability on account of long-term
ii. Impairment of buildings: For assessment employee benefits is provided based
of impairment, buildings are classified on an actuarial valuation under the
into two categories, as under: ‘Projected Unit Credit’ method.

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 ANNUAL REPORT 2022-23

NOTES TO ACCOUNTS of `1 crore is being contributed each year to

the Fund. The balance in the fund stood at
XII.7 LIABILITIES OF THE RESERVE BANK
`32 crore as on March 31, 2023.
XII.7.1 Capital
b) National Housing Credit (Long Term
The Reserve Bank was constituted as a private Operations) Fund
shareholders’ bank in 1935 with an initial paid-
This fund was set up in January 1989, in
up capital of `5 crore. The Reserve Bank was
terms of Section 46D of the RBI Act, 1934
nationalised with effect from January 1, 1949
for extending financial accommodation to
and its entire ownership remains vested with
the National Housing Bank (NHB). The initial
the Government of India. The paid-up capital
corpus of `50 crore has been enhanced by
continues to be `5 crore in terms of Section 4 of
annual contributions from the Reserve Bank
the RBI Act, 1934.
thereafter. From the year 1992-93, only a
XII.7.2 Reserve Fund token amount of `1 crore is being contributed
The original Reserve Fund of `5 crore was created each year. The balance in the fund stood at
in terms of Section 46 of the RBI Act, 1934 as `206 crore as on March 31, 2023.
contribution from the Central Government for the Note: Contribution to other Funds
currency liability of the then sovereign government
There are two other Funds constituted in
taken over by the Reserve Bank. Thereafter, an
terms of Section 46A of the RBI Act, 1934,
amount of `6,495 crore was credited to this fund
viz., National Rural Credit (Long Term
from out of gains on periodic revaluation of gold up
Operations) Fund and National Rural Credit
to October 1990, taking it to `6,500 crore. The fund
(Stabilisation) Fund which are maintained by
has been static since then as the unrealised gain/
the National Bank for Agriculture and Rural
loss on account of valuation of gold and foreign
Development (NABARD) for which a token
currency is since being booked in the Currency
amount of `1 crore each is set aside and
and Gold Revaluation Account (CGRA) which
transferred to NABARD every year.
appears under the head ‘Revaluation Accounts’.
XII.7.4 Deposits
XII.7.3 Other Reserves
These represent balances maintained with the
This includes National Industrial Credit (Long
Reserve Bank, by banks, the Central and State
Term Operations) Fund and National Housing
Governments, All India Financial Institutions, such
Credit (Long Term Operations) Fund.
as, Export Import Bank (EXIM Bank), NABARD,
a) National Industrial Credit (Long Term etc., Foreign Central Banks, International
Operations) Fund Financial Institutions, balances in Administrators
This fund was created in July 1964, in terms of RBI Employee Provident Fund, DEA Fund,
of Section 46C of the RBI Act, 1934 with an amount outstanding against Reverse Repo, SDF,
initial corpus of `10 crore. The fund witnessed MAF, PIDF, etc. Total deposits decreased by 21.89
annual contributions from the Reserve Bank per cent from `17,33,787.56 crore as on March
for financial assistance to eligible financial 31, 2022 to `13,54,217.22 crore as on March 31,
institutions. Since 1992-93, a token amount 2023.

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

a. Deposits-Government d. Deposits-Others
The Reserve Bank acts as the banker to the ‘Deposits-Others’ consist of balances of
Central Government in terms of Sections 20 Administrators of RBI Employee Provident
and 21, and as banker to State Governments Fund, balance in DEA Fund, balances
by mutual agreement in terms of Section 21A of Foreign Central Banks, Indian and
of the RBI Act, 1934. Accordingly, the Central International Financial Institutions, MAF,
and State Governments maintain deposits PIDF, amount outstanding under Reverse
with the Reserve Bank. The balances held Repo, SDF, etc. The amount under ‘Deposits-
by the Central and State Governments Others’ decreased by 59.23 per cent from
were `5,000.93 crore and `42.49 crore, `7,76,290.93 crore as on March 31, 2022
respectively, as on March 31, 2023 as to `3,16,489.64 crore as on March 31, 2023
compared to `5,000.04 crore and `42.45 primarily due to decrease in reverse repo
crore, respectively, as on March 31, 2022. deposits with the Reserve Bank.
b. Deposits-Banks XII.7.5 Risk Provisions
Banks maintain balance in their current The Reserve Bank makes risk provisioning in
accounts with the Reserve Bank to provide for terms of Section 47 of the RBI Act, 1934. The
the Cash Reserve Ratio (CRR) requirements risk provisions maintained by the Reserve Bank
and for working funds to meet payment and comprise the Contingency Fund (CF) and Asset
settlement obligations. The deposits held Development Fund (ADF). These risk provisions,
by banks increased by 6.13 per cent from along with Capital and Reserve Fund, are
`8,76,726.16 crore as on March 31, 2022 to components of the Reserve Bank’s Available
`9,30,476.97 crore as on March 31, 2023. Realised Equity (ARE) under the Economic
The increase in this head was primarily on Capital Framework1 (ECF) adopted by the
account of higher CRR requirement of 4.50 Reserve Bank. The details of Capital and Reserve
per cent of Net Demand and Time Liabilities Fund have been given in earlier paragraphs. The
(NDTL) as on March 31, 2023 as compared details of the two risk provisions are as under:
to CRR requirement of 4 per cent of NDTL as
a. Contingency Fund (CF)
on March 31, 2022.
This is a specific provision meant for meeting
c. Deposits-Financial Institutions Outside India
unexpected and unforeseen contingencies,
The balance under the head increased from including depreciation in the value of securities,
`75,727.98 crore as on March 31, 2022 to risks arising out of monetary/exchange
`1,02,207.19 crore as on March 31, 2023, rate policy operations, systemic risks and
due to increase in volume of repo transactions any risk arising on account of the special
during the year. responsibilities enjoined upon the Reserve

1 Based on the Report of the Expert Committee to Review the Extant Economic Capital Framework of the Reserve Bank of India, the ECF
was adopted by the Central Board of the Reserve Bank in August 2019.

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 ANNUAL REPORT 2022-23

Bank. As on March 31, 2023, amounts of expenditure. No provision was made towards
`1,65,488.93 crore and `19,417.61 crore ADF in the year 2022-23. As on March 31,
were charged to CF on account of debit 2023, the balance in ADF at `22,974.68 crore
balances in Investment Revaluation Account- remains the same as on March 31, 2022
Foreign Securities (IRA-FS) and Investment (Table XII.2).
Revaluation Account-Rupee Securities
XII.7.6 Revaluation Accounts
(IRA-RS), respectively. The charge to CF
is reversed on the first working day of The unrealised marked-to-market gains/losses are
the following year. Further, an amount of recorded in revaluation heads, viz., Currency and
`1,30,875.75 crore was also provided for Gold Revaluation Account (CGRA), Investment
towards CF to maintain the Available Realised Revaluation Accounts (IRA) and Foreign Exchange
Equity at the level of 6.00 per cent of the size Forward Contracts Valuation Account (FCVA). The
of the balance sheet. Accordingly, the balance details are as under:
in CF as on March 31, 2023 was `3,51,205.69 a. Currency and Gold Revaluation Account
crore as compared to `3,10,986.94 crore as (CGRA)
on March 31, 2022.
The major sources of market risk faced by
b. Asset Development Fund (ADF) the Reserve Bank are currency risk, interest
The Asset Development Fund was created in rate risk and movement in gold prices.
1997-98 and the balance therein represents Unrealised gains/losses on valuation of
provision specifically made till date towards Foreign Currency Assets (FCA) and Gold are
investments in subsidiaries and associate not taken to the income account but instead
institutions and to meet internal capital accounted for in the CGRA. Net balance

Table XII.2: Balances in Capital, Reserve Fund and Risk Provisions

[Available Realised Equity (ARE)]
(` crore)

As on Capital Reserve Fund Balance in CF Balance in ADF ARE ARE as a per cent
of balance sheet

1 2 3 4 5 6 = (2+3+4+5) 7
June 30, 2019 5.00 6,500.00 1,96,344.35 22,874.68 2,25,724.03 5.50
June 30, 2020 5.00 6,500.00 2,64,033.94@ 22,874.68 2,93,413.62 5.50
March 31, 2021 5.00 6,500.00 2,84,542.12$ 22,874.68 3,13,921.80 5.50
March 31, 2022 5.00 6,500.00 3,10,986.94* 22,974.68** 3,40,466.62 5.50
March 31, 2023 5.00 6,500.00 3,51,205.69^ 22,974.68 3,80,685.37 6.00

@: Increase in CF is the net impact of provision of `73,615 crore and charging of the debit balance in the FCVA amounting to `5,925.41 crore
as on June 30, 2020.
$ : Increase in CF is the net impact of provision of `20,710.12 crore and charging of the debit balance in the FCVA amounting to `6,127.35
crore as on March 31, 2021.
* : Increase in CF is the net impact of provision of `1,14,567.01 crore and charging of the debit balance in the IRA-FS amounting to `94,249.54
crore as on March 31, 2022.
^ : Increase in CF is the net impact of provision of `1,30,875.75 crore and charging of debit balances in IRA-FS and IRA-RS amounting to
`1,65,488.93 crore and `19,417.61 crore, respectively, as on March 31, 2023.
** : Increase in ADF is due to provision of `100 crore on account of investment in RBIH.

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

in CGRA, therefore, varies with the size of of each month and the unrealised gains/
the asset base, its valuation and movement losses arising therefrom are booked in IRA-
in the exchange rate and the price of gold. RS. The balance in IRA-RS decreased from
CGRA provides a buffer against exchange `18,577.81 crore as on March 31, 2022 to `(-
rate/gold price fluctuations. It can come )19,417.61 crore as on March 31, 2023 due
under pressure if there is an appreciation to hardening of yields across the yield curve
of the rupee vis-à-vis major currencies or a leading to mark-to-market losses.
fall in the price of gold. When CGRA is not
d. Foreign Exchange Forward Contracts
sufficient to fully meet exchange losses, it
Valuation Account (FCVA)
is replenished from the CF. During 2022-
23, the balance in CGRA increased from Marking to market of outstanding forward
`9,13,389.29 crore as on March 31, 2022 to contracts as on March 31, 2023 resulted in a
`11,24,733.16 crore as on March 31, 2023 net unrealised gain of `1,354.96 crore, which
mainly due to depreciation of rupee and was credited to FCVA with contra debit to
increase in the price of gold. Revaluation of Forward Contracts Account
(RFCA) as compared to net unrealised gain
b. Investment Revaluation Account-Foreign
of `2,576.90 crore as on March 31, 2022.
Securities (IRA-FS)
XII.7.7 Other Liabilities
The foreign dated securities are marked-to-
market on a daily basis and the unrealised ‘Other Liabilities’ increased by 79.07 per cent
gains/losses arising therefrom are from `75,547.53 crore as on March 31, 2022
transferred to IRA-FS. The balance in IRA- to `1,35,282.86 crore as on March 31, 2023,
FS decreased from `(-)94,249.54 crore as on primarily due to increase in surplus payable to the
March 31, 2022 to `(-)1,65,488.93 crore as on Central Government.
March 31, 2023 because of increase in yields i. Provision for Forward Contracts Valuation
across the maturities for almost all major Account (PFCVA)
markets. As per the extant policy, the debit
balance of `1,65,488.93 crore in IRA-FS was The balance was Nil in this account as on
adjusted against the CF on March 31, 2023 March 31, 2023 as well as on March 31, 2022.
which was reversed on the first working day Balances in Revaluation Accounts and
of the following year. Accordingly, the balance PFCVA for the last five years are given in
in IRA-FS as on March 31, 2023 was Nil. Table XII.3.
c. Investment Revaluation Account-Rupee ii. Provision for Payables
Securities (IRA-RS) This represents year end provisions made
Rupee Securities and Oil Bonds (with for expenditure incurred but not defrayed
exception as mentioned under significant and income received in advance/payable, if
accounting policy) held as assets of the any. The balance under this head increased
Banking Department are marked-to-market by 11.73 per cent from `3,281.08 crore as
as on the last business day of each week on March 31, 2022 to `3,665.97 crore as on
ending Friday and the last business day March 31, 2023.

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Table XII.3: Balances in Currency and Gold Revaluation Account (CGRA), Investment
Revaluation Account-Foreign Securities (IRA-FS), Investment Revaluation Account-Rupee
Securities (IRA-RS), Foreign Exchange Forward Contracts Valuation Account (FCVA) and
Provision for Forward Contracts Valuation Account (PFCVA)
(` crore)

As on CGRA IRA-FS IRA-RS FCVA PFCVA

1 2 3 4 5 6
June 30, 2019 6,64,479.74 15,734.96 49,476.26 1,303.96 0.00
June 30, 2020 9,77,141.23 53,833.99 93,415.50 0.00 5,925.41
March 31, 2021 8,58,877.53 8,853.67 56,723.79 0.00 6,127.35
March 31, 2022 9,13,389.29 0.00 18,577.81 2,576.90 0.00
March 31, 2023 11,24,733.16 0.00 0.00 1,354.96 0.00

iii. Surplus payable to the Central Government Orders (POs) (besides electronic payment
mechanism). The balance under this
Under Section 47 of the RBI Act, 1934, after
head represents the unclaimed DDs/POs.
making provisions for bad and doubtful debts,
The amount outstanding under this head
depreciation in assets, contribution to staff
decreased from `0.14 crore as on March 31,
and superannuation funds and for all matters
2022 to `0.11 crore as on March 31, 2023.
for which provisions are to be made by or
under the Act or that are usually provided v. Miscellaneous
by bankers, the balance of the profits of the This is a residual head representing items
Reserve Bank is required to be paid to the such as interest earned on earmarked
Central Government. Under Section 48 of securities, amounts payable on account of
the RBI Act, 1934, the Reserve Bank is not leave encashment, medical provisions for
liable to pay income tax or super tax on any employees, global provision, etc. The balance
of its income, profits or gains. Accordingly, under this head increased from `13,086.07
after adjusting the expenditure including crore as on March 31, 2022 to `13,308.32
provision for CF and contribution of `4 crore crore as on March 31, 2023.
to four statutory funds, the surplus payable
XII.7.8 Liabilities of Issue Department-Notes
to the Central Government for the year 2022-
Issued
23 amounted to `87,416.22 crore (including
`424.07 crore as against `493.92 crore The liabilities of Issue Department reflect the
in the previous year payable towards the quantum of currency notes in circulation. Section
difference in interest expenditure borne by the 34(1) of the RBI Act, 1934 requires that all
Government, consequent on conversion of banknotes issued by the Reserve Bank since
special securities into marketable securities). April 1, 1935 and the currency notes issued by the
Government of India before the commencement
iv. Bills Payable
of operations of the Reserve Bank, be part
The Reserve Bank provides remittance of the liabilities of the Issue Department. The
facilities for its constituents through issue ‘Notes Issued’ increased by 7.81 per cent from
of Demand Drafts (DDs) and Payment `31,05,720.56 crore as on March 31, 2022 to

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

`33,48,244.67 crore2 as on March 31, 2023. During Table XII.4: Physical holding of Gold
the year, banknotes in digital form as e`-Wholesale
As on As on
(e`-W) and e`-Retail (e`-R) were launched. The March 31, 2022 March 31, 2023
value of e`-W and e`-R in circulation stood at Volume in Volume in
`10.69 crore and `5.70 crore, respectively, as on metric tonnes metric tonnes

March 31, 2023. 1 2 3

Gold held as backing for 295.82 301.09
Earlier, an amount of `10,719.37 crore, Notes Issued (held in India)
representing the value of Specified Bank Notes Gold (including Gold Deposit) 464.60 493.54
held as asset of Banking
(SBNs) not paid was transferred to ‘Other
Department (held abroad)
Liabilities’ as on June 30, 2018. The Reserve
Total 760.42 794.63
Bank has made payments to the extent of `4.60
crore towards exchange value of SBNs to eligible
tenderers during the year ended March 31, 2023 as backing for Notes Issued as compared to
and the cumulative payment made against the 295.82 metric tonnes as on March 31, 2022
head stands at `30.20 crore. and is shown separately as an asset of Issue
Department. The balance 493.54 metric
XII.8 ASSETS OF THE RESERVE BANK
tonnes as on March 31, 2023 as compared
XII.8.1 ASSETS OF BANKING DEPARTMENT to 464.60 metric tonnes on March 31, 2022
i) Notes, Rupee Coin, Small Coin is treated as an asset of Banking Department
(Table XII.4).
This head represents the balances of Bank
notes, one-rupee notes, rupee coins of `1, 2, The value of gold (including gold deposit) held
5, 10 and 20 and small coins kept to meet the as asset of Banking Department increased by
day to day requirements of banking functions 17.20 per cent from `1,96,864.38 crore as on
conducted by the Reserve Bank. The balance March 31, 2022 to `2,30,733.95 crore as on
as on March 31, 2023 was `9.50 crore as March 31, 2023. This increase is on account
against `17.13 crore as on March 31, 2022. of addition of 28.94 metric tonnes of gold and
also due to increase in the price of gold and
ii) Gold-Banking Department (BD)
depreciation of INR vis-à-vis USD.
As on March 31, 2023, total gold held by the
Reserve Bank was 794.63 metric tonnes as iii) Bills Purchased and Discounted
compared to 760.42 metric tonnes as on Though the Reserve Bank can undertake
March 31, 2022. The increase is on account purchase and discounting of commercial bills
of addition of 34.21 metric tonnes of gold under the RBI Act, 1934, no such activity
during the year. was undertaken in 2022-23. Consequently,
Of 794.63 metric tonnes as on March 31, there was no such asset in the books of the
2023, 301.09 metric tonnes of gold is held Reserve Bank as on March 31, 2023.

2 Includes banknotes in physical and digital form.

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 ANNUAL REPORT 2022-23

iv) Investments-Foreign-Banking Department ‘Investments-Foreign-ID’ are FCA, eligible as

(BD) per Section 33(6) of the RBI Act, 1934, used
for backing of Notes Issued. The remaining of
Foreign Currency Assets (FCA) of the
FCA constitutes ‘Investments-Foreign-BD’.
Reserve Bank include: (i) deposits with other
central banks; (ii) deposits with the Bank for The position of FCA for the last two years is
International Settlements (BIS); (iii) deposits given in Table XII.5.
with commercial banks overseas; (iv)
v) Investments-Domestic-Banking
investments in foreign T-Bills and securities;
Department (BD)
and (v) Special Drawing Rights (SDR)
acquired from the Government of India (GoI). Investments comprise dated Government
Rupee Securities, State Government
The FCA is reflected under two heads in the
Securities and Special Oil Bonds. The
balance sheet: (a) ‘Investments-Foreign-BD’
Reserve Bank’s holding of domestic
shown as an asset of Banking Department
securities decreased by 5.53 per cent, from
and (b) ‘Investments-Foreign-ID’ shown as an
`14,88,815.96 crore as on March 31, 2022 to
asset of Issue Department.
`14,06,422.89 crore as on March 31, 2023.

Table XII.5: Details of Foreign Currency Assets (FCA)

(` crore)

Particulars As on March 31

2022 2023
1 2 3
I Investments-Foreign-BD* 11,41,127.75 10,08,993.26
II Investments-Foreign-ID 29,79,863.29 32,07,201.78

Total 41,20,991.04 42,16,195.04

*: includes shares in BIS and Society for Worldwide Interbank Financial Telecommunications (SWIFT) and SDR transferred from GoI valued at
`12,096.82 crore as on March 31, 2023 compared to `11,286.57 crore as on March 31, 2022.
Note:
1. The Reserve Bank has agreed to make resources available under the IMF’s New Arrangements to Borrow (NAB). Effective January 1,
2021, India’s commitment under NAB stands at SDR 8.88 billion (`98,235.15 crore/US$11.95 billion). As on March 31, 2023, investments
amounting to SDR 0.03 billion (`307.40 crore/US$0.04 billion) have been made under NAB.
2. The Reserve Bank has agreed to invest up to an amount, the aggregate of which shall not exceed US$5 billion (`41,094.80 crore), in the
bonds issued by India Infrastructure Finance Company (UK) Limited. As on March 31, 2023, the Reserve Bank has invested US$1.16 billion
(`9,558.65 crore) in such bonds.
3. During the year 2013-14, the Reserve Bank and GoI entered into a MoU for transfer of SDR holdings from GoI to RBI in a phased manner.
As on March 31, 2023, SDR 1.06 billion (`11,767.83 crore/US$1.43 billion) were held by the Reserve Bank.
4. With a view to strengthening regional financial and economic cooperation, the Reserve Bank has agreed to offer an amount of US$2 billion
both in foreign currency and Indian rupee under the SAARC Swap Arrangement to SAARC member countries. As on March 31, 2023, Swap
with Bhutan, Maldives and Sri Lanka, amounting to US$0.20 billion (`1,626.71 crore), US$0.10 billion (`821.90 crore) and US$0.40 billion
(`3,287.56 crore) respectively, is outstanding.
5. The nominal value of foreign securities posted as collateral and margin in repurchase and IRF transactions was `1,04,432.73 crore/US$12.71
billion and the nominal value of those received under reverse repurchase transactions was `1,15,230.75 crore/US$14.02 billion as on March
31, 2023.
6. The nominal value of foreign securities lent under Security Lending Arrangement was `75,898.27 crore/US$9.23 billion as on March 31,
2023.

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

The decrease was mainly on account of include amounts outstanding

liquidity management operations conducted against Repo under Liquidity
by way of net sale of government securities, Adjustment Facility (LAF), Marginal
redemption of securities in the portfolio and Standing Facility (MSF) and special
hardening of yields across the yield curve liquidity facility to banks. The
leading to lower valuation. amount outstanding increased from
A part of Investments-Domestic-BD is also `94,365.75 crore as on March 31,
earmarked for various staff funds, DEA Fund 2022 to `1,12,731.34 crore as on
and PIDF as explained in para 2.5(d). As on March 31, 2023 due to increase in
March 31, 2023, `1,01,046 crore (face value) funds availed by banks under MSF
was earmarked for the said funds. due to lower surplus liquidity in the
banking system during the year.
vi) Loans and Advances
a) Central and State Governments  Loans and advances to NABARD:

These loans are extended in the form The Reserve Bank can extend
of Ways and Means Advances (WMA) loans to NABARD under Section
and Overdraft (OD) to the Central 17(4E) of the RBI Act, 1934. The
Government and in the form of WMA, OD balance under this head decreased
and Special Drawing Facility (SDF) to from `23,010.10 crore as on March
State Governments in terms of Section 31, 2022 to Nil on March 31, 2023.
17(5) of the RBI Act, 1934. The WMA  Loans and advances to others:
limit, in case of the Central Government,
The balance under this head
is fixed from time to time in consultation
with the Government of India and in represents loans and advances
case of State Governments, the limit to National Housing Bank (NHB),
for individual State/Union Territory is Small Industries Development
fixed based on the recommendations of Bank of India (SIDBI) and liquidity
Advisory Committee/Group constituted support provided to Primary
for this purpose. Loans and advances to Dealers (PDs). The balance under
the Central Government was `48,677.00 this head increased by 68.78 per
crore as on March 31, 2023 as against cent from `14,506.94 crore as on
Nil as on March 31, 2022. Loans March 31, 2022 to `24,485.36 crore
and advances to State Governments as on March 31, 2023, primarily
decreased by 52.49 per cent from due to increase in liquidity support
`1,666.56 crore as on March 31, 2022 to provided to Primary Dealers on
`791.72 crore as on March 31, 2023. March 31, 2023.
b) Loans and advances to Commercial, Co- c) Loans and advances to Financial
operative Banks, NABARD and others Institutions outside India
 Loans and advances to Commercial Balances under the head increased
and Co-operative Banks: These from `75,243.50 crore as on March 31,

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 ANNUAL REPORT 2022-23

2022 to `1,02,128.11 crore as on March a. Swap Amortisation Account (SAA)

31, 2023 due to increase in volume of As on March 31, 2023 as well as on
reverse repo transactions during the March 31, 2022, the balance in SAA
year. was Nil as there were no outstanding
vii) Investment in Subsidiaries/Associates contracts of swaps which were in nature
of repo at off market rate.
The comparative position of investment in
subsidiaries/associate institutions as on b. Revaluation of Forward Contracts
March 31, 2022 and March 31, 2023 is given Account (RFCA)
in Table XII.6. The total holding as on March The balance in RFCA was `1,354.96
31, 2023 was `2,063.60 crore, same as on crore as on March 31, 2023 representing
March 31, 2022. net marked-to-market gain on
viii) Other Assets outstanding forward contracts as against
`2,576.90 crore on March 31, 2022.
‘Other Assets’ comprise fixed assets (net
of depreciation), accrued income, Swap XII.8.2 Assets of Issue Department
Amortisation Account (SAA), Revaluation The eligible assets of the Issue Department held
of Forward Contracts Account (RFCA) and as backing for Notes Issued consist of gold coins,
miscellaneous assets. Miscellaneous assets gold bullion, foreign securities, rupee coins, rupee
comprise mainly loans and advances to securities and Domestic Bills of Exchange. The
staff, amount spent on projects pending Reserve Bank holds 794.63 metric tonnes of
completion, security deposit paid, etc. gold, of which 301.09 metric tonnes are held as
The amount outstanding under ‘Other backing for Notes Issued as on March 31, 2023
Assets’ increased by 26.81 per cent from (Table XII.4). The value of gold held as asset of
`46,900.04 crore as on March 31, 2022 as Issue Department increased by 12.30 per cent
compared to `59,474.84 crore as on March from `1,25,348.98 crore as on March 31, 2022 to
31, 2023. `1,40,765.60 crore as on March 31, 2023.

Table XII.6: Holdings in Subsidiaries/Associates

(` crore)

2021-22 2022-23 Per cent holding as on

March 31, 2023

1 2 3 4

a) Deposit Insurance and Credit Guarantee Corporation (DICGC) 50.00 50.00 100
b) Bharatiya Reserve Bank Note Mudran (P) Ltd. (BRBNMPL) 1,800.00 1,800.00 100
c) Reserve Bank Information Technology (P) Ltd. (ReBIT) 50.00 50.00 100
d) National Centre for Financial Education (NCFE) 30.00 30.00 30
e) Indian Financial Technology & Allied Services (IFTAS) 33.60 33.60 100
f) Reserve Bank Innovation Hub (RBIH) 100.00 100.00 100

Total 2,063.60 2,063.60

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

This increase in the value of gold during the year FOREIGN EXCHANGE RESERVES
is on account of addition of 5.27 metric tonnes of
XII.9 Foreign Exchange Reserves (FER)
gold and, also due to increase in the price of gold
comprise Foreign Currency Assets (FCA), Gold
and depreciation of INR vis-à-vis USD.
(including gold deposit), Special Drawing Rights
Consequent upon the increase in Notes Issued, (SDR) holdings and Reserve Tranche Position
Investments-Foreign-ID held as its backing (RTP). The SDR holdings acquired from GoI form
increased by 7.63 per cent from `29,79,863.29 part of the Reserve Bank’s balance sheet and
crore as on March 31, 2022 to `32,07,201.78 are included under ‘Investments-Foreign-BD’. The
crore as on March 31, 2023. SDR holdings remaining with GoI and the RTP,
which represent India’s quota contribution to IMF
The balance of Rupee Coins held by the Issue
in foreign currency, are not a part of the Reserve
Department decreased by 45.45 per cent from
Bank’s balance sheet. The position of FER as on
`508.29 crore as on March 31, 2022 to `277.29
March 31, 2022 and March 31, 2023 in Indian
crore as on March 31, 2023.
Rupees and the US dollar, which is the numéraire
currency for the FER, is furnished in Tables XII.7
(a) and (b).

Table XII.7(a): Foreign Exchange Reserves (Rupee)

(` crore)

Components As on Variation

March 31, 2022 March 31, 2023 Absolute Per cent

1 2 3 4 5

Foreign Currency Assets (FCA) 40,94,564.98^ 41,89,132.39 #

94,567.41 2.31
Gold (including gold deposit) 3,22,213.36@ 3,71,499.55* 49,286.19 15.30
Special Drawing Rights (SDR) 1,43,051.88 1,51,164.10 8,112.22 5.67
Reserve Tranche Position (RTP) in IMF 38,988.28 42,468.49 3,480.21 8.93
Foreign Exchange Reserves (FER) 45,98,818.50 47,54,264.53 1,55,446.03 3.38

^: Excludes (a) SDR Holdings of the Reserve Bank amounting to `10,975 crore, which is included under the SDR holdings; (b) Investment
of `10,904.23 crore in bonds issued by IIFC (UK); and (c) `1,517.87 crore lent to Bhutan and `3,028.96 crore lent to Sri Lanka under the
Currency Swap arrangement made available for SAARC countries.
#: Excludes (a) SDR Holdings of the Reserve Bank amounting to `11,767.83 crore, which is included under the SDR holdings; (b) Investment
of `9,558.65 crore in bonds issued by IIFC (UK); and (c) `1,626.71 crore lent to Bhutan, `821.90 crore lent to Maldives and `3,287.56 crore
lent to Sri Lanka under the Currency Swap arrangement made available for SAARC countries.
@: Of this, Gold valued at `1,25,348.98 crore is held as an asset of Issue Department and Gold (including gold deposit) valued at `1,96,864.38
crore is held as an asset of Banking Department.
*: Of this, Gold valued at `1,40,765.60 crore is held as an asset of Issue Department and Gold (including gold deposit) valued at `2,30,733.95
crore is held as an asset of Banking Department.

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 ANNUAL REPORT 2022-23

Table XII.7(b): Foreign Exchange Reserves (USD)

(US$ billion)

Components As on Variation
March 31, 2022 March 31, 2023 Absolute Per cent
1 2 3 4 5
Foreign Currency Assets (FCA) 540.72* 509.69** -31.03 -5.74
Gold (including gold deposit) 42.55 45.20 2.65 6.23
Special Drawing Rights (SDR) 18.89 18.39 -0.50 -2.65
Reserve Tranche Position (RTP) in IMF 5.14 5.17 0.03 0.58
Foreign Exchange Reserves (FER) 607.30 578.45 -28.85 -4.75

*: Excludes (a) SDR Holdings of the Reserve Bank amounting to US$1.45 billion, which is included under the SDR holdings; (b) US$1.44 billion
invested in bonds of IIFC (UK); and (c) BTN equivalent to US$0.20 billion equivalent of INR currency lent to Bhutan and US$0.40 billion lent
to Sri Lanka under the Currency Swap arrangement made available for SAARC countries.
**: Excludes (a) SDR Holdings of the Reserve Bank amounting to US$1.43 billion, which is included under the SDR holdings; (b) US$1.16 billion
invested in bonds of IIFC (UK); and (c) BTN equivalent to US$0.20 billion equivalent of INR currency lent to Bhutan, US$0.10 billion lent to
Maldives and US$0.40 billion lent to Sri Lanka under the Currency Swap arrangement made available for SAARC countries.

ANALYSIS OF INCOME AND EXPENDITURE Earnings from Foreign Sources

INCOME XII.11 The income from foreign sources increased
XII.10 The components of Reserve Bank’s by 69.82 per cent from `89,582.36 crore in 2021-
income are ‘Interest’ and ‘Other Income’ including 22 to `1,52,128.54 crore in 2022-23. The rate of
(i) Discount (ii) Exchange (iii) Commission earnings on foreign currency assets was 3.73 per
(iv) Amortisation of premium/discount on Foreign cent in 2022-23 as compared to 2.11 per cent in
and Rupee Securities (v) Profit/Loss on sale and 2021-22 (Table XII.8).
redemption of Foreign and Rupee Securities
Earnings from Domestic Sources
(vi) Depreciation on Rupee Securities inter
portfolio transfer (vii) Rent Realised (viii) Profit/ XII.12 The net income from domestic sources
Loss on sale of Bank’s property and (ix) Provision increased by 18.15 per cent from `70,529.77
no longer required and Miscellaneous Income. crore in 2021-22 to `83,328.72 crore in 2022-23
Certain items of income such as interest on LAF mainly on account of decrease in net outgo of
repo, Repo in foreign security and exchange interest under LAF/MSF/SDF due to lower surplus
gain/loss from foreign exchange transactions are liquidity in the banking system (Table XII.9).
reported on net basis.

Table XII.8: Earnings from Foreign Sources

(` crore)

Item 2021-22 2022-23 Variation

Absolute Per cent
1 2 3 4 5
Foreign Currency Assets (FCA) 41,20,991.04 42,16,195.04 95,204.00 2.31
Average FCA 42,42,514.17 40,81,053.94 -1,61,460.23 -3.81
Earnings from FCA (interest, discount, exchange gain/loss, capital gain/loss on securities) 89,582.36 1,52,128.54 62,546.18 69.82
Earnings from FCA as per cent of average FCA 2.11 3.73 1.62 76.78

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

Table XII.9: Earnings from Domestic Sources

(` crore)

2021-22 2022-23 Variation

Item Absolute Per cent

1 2 3 4 5
Earnings (I+II+III+IV) 70,529.77 83,328.72 12,798.95 18.15

I. Earnings from Rupee Securities and discounted instruments

i) Interest on holding of Rupee Securities (including Oil Bonds) 96,396.42 96,516.05 119.63 0.12
ii) Profit/Loss on sale and redemption of Rupee Securities 6,028.19 -222.86 -6,251.05 -103.70
iii) Depreciation on Rupee securities inter portfolio transfer -20.07 -110.67 -90.60 451.42
iv) Amortisation of premium/discount on Rupee securities (including Oil Bonds) -1,717.97 -2,264.19 -546.22 31.79
v) Discount 403.76 0.00 -403.76 -100.00
Sub total (i+ii+iii+iv+v) 1,01,090.33 93,918.33 -7,172.00 -7.09

II. Interest on LAF/MSF/SDF

i) Net Interest on LAF Operations -35,501.29 -9,068.41 26,432.88 74.46
ii) Interest on SDF 0.00 -7,444.71 -7,444.71 -100.00
iii) Interest on MSF operations 37.63 361.02 323.39 859.39
Sub total (i+ii+iii) -35,463.66 -16,152.10 19,311.56 -54.45

III. Interest on other loans and advances

i) Government (Central & States) 296.34 556.49 260.15 87.79
ii) Banks & Financial Institutions 1,149.57 1,791.55 641.98 55.85
iii) Employees 55.91 63.94 8.03 14.36
Sub total (i+ii+iii) 1,501.82 2,411.98 910.16 60.60

IV. Other Earnings

i) Exchange 0.00 0.00 0.00 0.00
ii) Commission 3,058.09 3,469.14 411.05 13.44
iii) Rent Realised, Profit or Loss on sale of Bank’s Property, Provision no longer 343.19 -318.64 -661.83 -192.85
required and Miscellaneous Income
Sub total (i+ii+iii) 3,401.28 3,150.50 -250.78 -7.37

XII.13 Interest on holding of Rupee Securities yield curve in the current year which led to lower
(including Oil Bonds) increased marginally from realisation on the sale/conversion of securities. In
`96,396.42 crore in 2021-22 to `96,516.05 crore 2022-23, sale operations amounted to `35,030
in 2022-23. crore (Face Value) and conversion of securities
XII.14 The Net Interest Income from Liquidity by the GoI with the Reserve Bank amounted to
Adjustment Facility (LAF)/Marginal Standing `22,610 crore.
Facility (MSF)/Standing Deposit Facility (SDF) XII.16 Amortisation of premium/discount on
operations increased from `(-)35,463.66 crore in Rupee Securities (including Oil Bonds): The
2021-22 to `(-)16,152.10 crore in 2022-23 due to premium/discount on Rupee Securities and Oil
lower surplus liquidity in the banking system in the Bonds held by the Reserve Bank, are amortised
current year as compared to previous year. on a daily basis during the period of residual
XII.15 Profit on sale and redemption of Rupee maturity. The net income from premium/discount
Securities decreased from `6,028.19 crore in on amortisation of Rupee Securities decreased
2021-22 to `(-)222.86 crore in 2022-23 primarily from `(-)1,717.97 crore in 2021-22 to `(-)2,264.19
on account of hardening of yields across the crore in 2022-23.

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XII.17 Discount: The income from holding of c. Employees:

discounted instruments (T-Bills) decreased from
Interest on loans and advances to employees
`403.76 crore in 2021-22 to Nil in 2022-23.
increased by 14.36 per cent from `55.91
XII.18 Interest on loans and advances crore in 2021-22 to `63.94 crore in 2022-23.
a. Central and State Governments: XII.19 Commission: The commission income
Interest income on loans and advances increased by 13.44 per cent from `3,058.09
extended to Central and State Governments crore in 2021-22 to `3,469.14 crore in 2022-23,
increased by 87.79 per cent from `296.34 primarily on account of a) increase in management
crore in 2021-22 to `556.49 crore in 2022-23. commission received for servicing outstanding
Of the total, interest income received from the Central and State governments loans including
Central Government on account of WMA/OD Savings Bonds, Government Securities, T-Bills
increased from Nil in 2021-22 to `32.52 crore and b) increase in the floatation charges recovered
in 2022-23 and interest income received from from the Central and State Governments for loans
State Governments on account of WMA/OD/ issued during the year.
Special Drawing Facility (SDF) increased by
XII.20 Rent Realised, Profit/Loss on sale of
76.81 per cent from `296.34 crore in 2021-22
Bank’s property, Provision no longer required
to `523.97 crore in 2022-23. The increase in
and Miscellaneous Income: Earnings from these
interest earnings was on account of i) higher
income heads decreased from `343.19 crore in
availment of funds from the Reserve Bank by
2021-22 to `(-)318.64 crore in 2022-23.
the Central and State Governments and ii)
increase in the applicable interest rate due to EXPENDITURE
increase in Repo Rate by the Reserve Bank.
XII.21 The Reserve Bank incurs expenditure in
b. Banks & Financial institutions: the course of performing its statutory functions
Interest on loans and advances to banks by way of agency charges/commission, printing
and financial institutions increased by 55.85 of notes, expenditure on remittance of currency,
per cent from `1,149.57 crore in 2021-22 besides employee related and other expenses.
to `1,791.55 crore in 2022-23 due to higher The total expenditure of the Reserve Bank
availment of funds by Financial Institutions increased by 14.05 per cent from `1,29,800.68
under Special Liquidity Facility and increase crore in 2021-22 to `1,48,037.04 crore in
in Repo Rate by the Reserve Bank. 2022-23 (Table XII.10).

Table XII.10: Expenditure

(` crore)
Item 2018-19 2019-20 2020-21 2021-22 2022-23
1 2 3 4 5 6
i. Interest 1.16 1.34 1.10 1.77 1.92
ii. Employee Cost 6,851.07 8,928.06 4,788.03 3,869.43 6,003.93
iii. Agency Charges/Commission 3,910.21 3,876.08 3,280.06 4,400.62 4,068.62
iv. Printing of Notes 4,810.67 4,377.84 4,012.09 4,984.80 4,682.80
v. Provisions 63.60 73,615.00 20,710.12 1,14,667.01 1,30,875.75
vi. Others 1,407.44 1,742.61 1,355.35 1,877.05 2,404.02
Total (i+ii+iii+iv+v+vi) 17,044.15 92,540.93 34,146.75 1,29,800.68 1,48,037.04

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

i) Interest underwriting commission in the current

year.
During 2022-23, an amount of `1.92 crore
was paid as interest to Dr. B. R. Ambedkar c. Sundries
Fund (set up for giving scholarship to wards
This includes the expenses incurred on
of staff) and Employees Benevolent Fund as
handling charges, turnover commission
compared to `1.77 crore in 2021-22.
paid to banks for Relief/Savings
ii) Employee Cost Bonds subscriptions and Commission
The total employee cost increased by 55.16 paid on Securities Borrowing and
per cent from `3,869.43 crore in 2021-22 Lending Arrangement (SBLA), etc.
to `6,003.93 crore in 2022-23. The increase The commission paid under this head
was due to increase in Reserve Bank’s increased from `12.29 crore in 2021-22
expenditure towards accrued liabilities of to `20.98 crore in 2022-23.
various superannuation funds in 2022-23.
d. Fees paid to the External Asset
iii) Agency Charges/Commission Managers, Custodians, Brokers, etc.
a. Agency Commission on Government The expenditure under the head
Transactions increased from `42.43 crore in 2021-22
The Reserve Bank discharges the to `67.11 crore in 2022-23.
function of banker to governments iv) Printing of Notes
through a large network of agency bank
branches that serve as retail outlets for The supply of notes during the year 2022-
governments’ receipts and payments. 23 at 2,26,002 lakh pieces was 1.57 per
The Reserve Bank pays commission cent higher than that of the year 2021-22
to these agency banks at prescribed (2,22,505 lakh pieces). The expenditure
rates. The net agency commission paid incurred on printing of banknotes decreased
on account of government business from `4,984.80 crore in 2021-22 to `4,682.80
increased marginally by 0.37 per cent crore in 2022-23.
from `3,858.95 crore in 2021-22 to v) Provisions
`3,873.06 crore in 2022-23.
The ECF requires the Contingent Risk Buffer
b. Underwriting Commission paid to (CRB) to be maintained in the range of 5.50
Primary Dealers per cent to 6.50 per cent of the size of the
The expenditure on account of balance sheet. The Central Board approved
underwriting commission paid to Primary that CRB may be maintained at 6.00 per cent
Dealers decreased from `486.95 crore of the size of the balance sheet of the Reserve
in 2021-22 to `107.47 crore in 2022- Bank for the year 2022-23. Accordingly, a
23. Post pandemic recovery and lower provision of `1,30,875.75 crore was made
expectation of devolvement by PDs and transferred to CF during the year
contributed to significant lowering of the (Table XII.2).

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 ANNUAL REPORT 2022-23

vi) Others balances are callable at three months’ notice by a

Other expenses comprise expenditure decision of the BIS Board of Directors.
on remittance of currency, printing and Prior period transactions
stationery, audit fees and related expenses,
XII.23 For the purpose of disclosure, prior period
miscellaneous expenses, etc. which
transactions of `1 lakh and above only have been
increased by 28.07 per cent from `1,877.05
considered. The prior period transactions under
crore in 2021-22 to `2,404.02 crore in
2022-23. expenditure and income amounted to `0.60 crore
and `28.38 crore, respectively.
Contingent Liabilities
Payment to Micro and Small Enterprises
XII.22 Total contingent liabilities of the Reserve
under the Micro, Small & Medium Enterprises
Bank amounted to `1,005.74 crore. The main
Development Act, 2006
component of it being partly paid shares,
denominated in SDR, of Bank for International XII.24 The following table sets forth the cases
Settlements (BIS) held by the Reserve Bank. The of delayed payments of the principal amount
uncalled liability on partly paid shares of the BIS or interest due thereon to Micro and Small
as on March 31, 2023 was `986.92 crore. The Enterprises:
(` crore)
Particulars 2021-22 2022-23
Principal Interest Principal Interest
1 2 3 4 5
i. the principal amount and the interest due thereon remaining - - - -
unpaid to any supplier as at March 31, 2023
ii. the amount of interest paid by the buyer in terms of section 0.04 0.001 - -
16, along with the amount of the payment made to the supplier
beyond the appointed day during the accounting year;
iii. the amount of interest due and payable for the period of delay - - - -
in making payment (which have been paid but beyond the
appointed day during the year) but without adding the interest
specified under the Act;
iv. the amount of interest accrued and remaining unpaid at the end - - - -
of the accounting year;
v. the amount of further interest remaining due and payable even in NA NA NA NA
the succeeding years, until such date when the interest dues as
above are actually paid to the small enterprise, for the purpose
of disallowance as a deductible expenditure under section 23.
-: Nil. NA: Not Applicable.

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 THE RESERVE BANK’S ACCOUNTS FOR 2022-23

Previous year’s figures of Section 50 of the RBI Act, 1934. The accounts
of the Reserve Bank for the year 2022-23 were
XII.25 Figures for the previous year have been
audited by M/s Chandabhoy & Jassoobhoy,
rearranged, wherever necessary to make them
Mumbai and M/s Ford Rhodes Parks & Co. LLP,
comparable with the current year.
Mumbai, as the Statutory Central Auditors and
Auditors M/s S. Ghose & Co., Kolkata, M/s N. C. Rajagopal
XII.26 The statutory auditors of the Reserve Bank & Co., Chennai and M/s J. C. Bhalla & Co., New
are appointed by the Central Government in terms Delhi as Statutory Branch Auditors.

281