The country’s biggest bank, Reserve Bank of India (RBI) is holding a big share of its profits as a reserve and its balance sheet includes around Rs. 36.2 lakh crore.
The 26% of the reserve comes with foreign and Indian government securities especially currency notes having interest rate against the government borrowings. As per the estimates, RBI is holding 556 tons of gold with the forex assets thus making up 77% of its total assets.
The major reserve of RBI reserve constitutes those from the Currency and Gold Revaluation Account (CGRA) which is around Rs. 6.9 lakh crore in 2017-18.
However, RBI reserve experience both loses and gain as per the market movements as during last year the CGRA increased by 30.5% because of the large decrease in Indian currency value against the US Dollar.
The Contingency Fund (CF) which is reserved for unexpected situations arises from the monetary policies and exchange rate operations. Both CGRA and CF constitutes 26% of the assets.
While the surplus amount RBI have is not required to pay the income tax and it is assigned to transfer to the government after meeting their needs. In 2017-18, RBI’s CF was maintained with the amount of Rs. 14,200 crore.