Key Highlights From RBI Annual Report 2019

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Key Highlights From RBI Annual Report 2019
Rajat Mishra - 29 August 2019

The Reserve Bank of India (RBI) today released its Annual Report for FY19. In this report the apex bank outlined some concerning factors of the economy. In this report the RBI said that the slowdown in Indian economy could be cyclical with deep structural problems and requires urgent reforms.

“Reviving consumption demand and private investment has assumed the highest priority in 2019-20. This may involve strengthening the banking and non-banking sectors, a big push for spending on infrastructure and implementation of much needed structural reforms in the areas of labour laws, taxation, and other legal reforms, which will also enhance ease of doing business in pursuit of fulfilling the vision of India becoming a $ 5 trillion economy by 2024-25,” the report said.

The report also said that the farm sector needs urgent reforms, such as more cold storage facilities and reforms in market mechanism, for doubling the farmers income.

Key Highlights From RBI Annual Report 2019:-

  1. In the annual report, the central bank makes it clear that as of June 30, 2019 it "stands as a central bank with one of the highest levels of financial resilience globally."

  1. The balance sheet size of the Reserve Bank increased by 13.42 per cent to Rs 41.03 lakh crore from 36.17 lakh crore for the year ended June 30, 2019.

  1. The Reserve Bank of India's contingency fund, which is useful in fighting any exigency is reduced to Rs 1.96 lakh crore as of June 30, after Rs 52,000 crore excess payout to the government.

  1. While income for the year 2018-19 increased by 146.59 per cent to Rs 1.93 lakh crore in 2018-2019, the expenditure decreased by 39.72 per cent to Rs 17,045 crore, from Rs 28,277 crore in 2017-18.

  2. The interest income grew by 44.62 percent to Rs 1.06 lakh crore and other income rose to Rs 86,199 crore as on June 30, 2019 from Rs 4410 crore a year ago.

  1. The RBI’s holding of government securities grew by 57.19 per cent, from Rs 6.29 lakh crore to Rs 9.89 lakh crore as on June 30, 2019.

  1. The year ended with an overall surplus of Rs 1, 75,987crore as against Rs 50,000 crore in the previous year, representing an increase of 251.97 per cent.

  1. As on June 30, 2019, the RBI held 618.16 metric tonnes of gold as compared to 566.23 metric tonnes as on June 30, 2018. The increase is on account of addition of 51.93 metric tonnes of gold during the year.

  2. After the IL& FS crisis, credit flow from NBFCs to commercial sector dips 20%

  1. The value of bank fraud cases increased 74%, from₹41,167 crore in FY18 to ₹71,543 crorein FY19, said the RBI annual report 2019 and the number of bank fraud cases rose from 5,900 in FY18 to 6,800 in FY19.

  1. The gross non-performing assets (GNPA) ratio of the banking system declined to 9.1 per cent in March 2019, from 11.2 per cent in the previous year, due to “steadfastly pursued recognition, repair and resolution.”

  1. Currency in circulation soars 17 percent to Rs 21.10 trillion, says RBI annual report 2019. RBI says growth deceleration a “soft patch mutating into cyclical downswing” and not structural.

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