The report noticed that this important transfer of excess supported by active RBI involvement in foreign exchange market. In fact, RBI is the largest seller of Exchange Exchange Reserves Among the banks of Asian Central on January 2025.
It says “Excessive payments are run by strong grobo dollar, higher foreign profits, and steady increase in income”.
The central bank has taken aggressive measures to strengthen the rupee of the year, including dollar sales. In September 2024, foreign reserves in India reserves changed USD 704 billion. After that, the RBI sold several dollars to keep the strength of money.
The sale of gross dollar in the current financial year, until February 2025, stood in a large USD 371.6 billion, higher than USD 153 billion recorded last year (FY24). This aggressive sale has helped book the RBI which many foreigners earned, added to excess.
In addition, the RBI earns additional income from its securities rupee. The Central Bank’s Holdings in Rupee Securities Rose by RS 1.95 Lakh Crore to Rs 15.6 Lakh crore as of March 2025. Although a Decline in Government Securities (G-Sec) Yields Impacted the mark-to-market (MTM) Gains on these holdings, the overall interest income saw a steady rise.the report Further highlighted the RBI’s prudent approach in maintaining financial stability. While paying the division of Rs 2.7 trillion, it can exceed Rs 3.5 trillion if not for RBI’s decision to increase its risk buffer.
The contingent riser buffer (CRB), acting as a protection against future risks, maintained within a 7.5 percent of the central board.
The transformed excessively under the revised economic framework of economics (ECF), approved by the RBI center board during the May 15, 2025.
This great payment is a windfall for government. Union budget for 2025-26 plans a total income of Rs 2.56 Lakh crore from RBI and Public Sector financial institutions. With this most recent transition, the real value is higher than budget estimates.
