The Reserve Bank of India's (RBI) record surplus transfer of nearly Rs 2.9 lakh crore to the government reflects a year in which gains from dollar investments, forex market intervention, and robust domestic bond income combined to lift the central bank's total income by 26% to about Rs 4.3 lakh crore in FY26, up from Rs 3.4 lakh crore a year earlier.
Foreign Income Growth
A large share of the increase in income came from foreign sources, where income climbed 26.6% to Rs 3.3 lakh crore. Exchange gains from foreign currency operations amounted to Rs 1.7 lakh crore, reflecting interventions in which the RBI sold dollars at prices higher than those at which they were acquired. Returns on foreign assets also improved, with the yield on foreign currency assets rising to 6.4% from 5.3% in FY25, tracking higher global interest rates, particularly elevated yields on American government bonds. The central bank thus benefited from holding a sizeable stock of foreign assets in a period of tighter global monetary conditions.
Domestic Income Expansion
Domestic income, too, expanded briskly. Interest earned on rupee securities rose by 37.7% to Rs 1.2 lakh crore. Holdings of domestic government securities increased by 44.9% to Rs 22.6 lakh crore, as the RBI undertook net purchases to manage liquidity and support market operations.
Balance Sheet Growth
The balance sheet expanded by 20.6% to nearly Rs 92 lakh crore during the year, reflecting both asset growth and valuation gains. A major contribution came from the currency and gold revaluation account, which rose by over Rs 8.7 lakh crore to Rs 21.7 lakh crore. The value of gold holdings rose by 63.8% to Rs 10.9 lakh crore, supported by higher gold prices and valuation effects. The rupee's depreciation against major currencies further inflated the domestic value of foreign assets.
