How does the RBI generate surplus funds?
Explore the sources contributing to RBI's surplus explained.
- The Reserve Bank of India (RBI) generates surplus funds primarily through its operations as the central bank of the country.
- One major source of RBI's surplus is the interest earned on its holdings of government securities and foreign currency assets.
- Profits from currency printing operations, banking services for the government, and management of foreign exchange reserves also contribute to the surplus.
- Income from providing liquidity support to financial institutions, supervisory fees, and dividends from its investments are additional sources of revenue for the RBI.
- The RBI also gains from the appreciation of its asset holdings and earning profits on the sale of securities or foreign exchange.
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