RBI's income rose 26% to '4.3 lakh crore over dollar gains in FY26

MUMBAI: RBI's record surplus transfer of nearly Rs 2.9 lakh crore reflects a year in which gains from dollar investments, forex market intervention and robust domestic bond income combined to lift RBI's total income by 26% to about Rs 4.3 lakh crore in FY26, up from Rs 3.4 lakh crore a year earlier.

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 govt bonds. The central bank thus benefited from holding a sizeable stock of foreign assets in a period of tighter global monetary conditions.

Domestic income, too, expanded briskly. Interest earned on rupee securities rose by 37.7% to Rs 1.2 lakh crore. Holdings of domestic govt securities increased by 44.9% to Rs 22.6 lakh crore, as RBI undertook net purchases to manage liquidity and support market operations.

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 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 domestic value of foreign assets.
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