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India to remain fastest-growing economy, RBI's balance sheet increases to Rs 76.25 lakh crore

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....ndia to remain fastest-growing economy, RBI's balance sheet increases to Rs 76.25 lakh crore<BR>FEMA / RBI<BR>Dated:- 29-5-2025<BR>PTI<BR>Mumbai, May 29 (PTI) The balance sheet of the RBI increased to Rs 76.25 lakh crore, aided by nearly 33 per cent gains in foreign exchange transactions, as of March 2025, leading to a bumper Rs 2.7 lakh crore dividend to the central government, said the central b....

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....ank's annual report released on Thursday. The keenly watched report said the Indian economy is poised to remain the fastest-growing major economy in 2025-26 by leveraging its sound macroeconomic fundamentals, robust financial sector and commitment towards sustainable growth. The economy exhibited resilience during 2024-25, supported by strong macroeconomic fundamentals and proactive policy mea....

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....sures, amid protracted geopolitical tensions and geoeconomic fragmentation, said the RBI's Annual Report for the Year 2024-25. "The strength of the financial sector, reflected in improved asset quality and well-capitalised banks, further supported economic activity. Amidst multiple global headwinds, the Indian financial markets demonstrated resilience and orderly movements," it said. It also f....

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....lagged global financial market volatility, geopolitical tensions, trade fragmentation, supply-chain disruptions and climate-induced uncertainties as factors posing downside risks to the growth outlook and also upside risks to the inflation outlook. However, factors like easing of supply-chain pressures, softening global commodity prices and higher agricultural production on above-normal south we....

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....st monsoon augur well for inflation outlook, the Reserve Bank said. Shifts in tariff policies may result in sporadic episodes of volatility in financial markets, it said, adding that exports may encounter headwinds on "inward-looking policies and tariff-wars". The trade pacts being signed and negotiated by India will help ensure that the impact is limited, the RBI said, adding that services ex....

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....ports and inward remittances will help ensure that the current account deficit is "eminently manageable" in the new fiscal. The RBI, which has already lowered key policy rates in two consecutive reviews, said in the annual report that there is now a "greater confidence" on durable alignment of headline inflation to the 4 per cent target over a 12-month horizon. Considering the dynamic nature o....

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....f the interest rate risk, banks need to address both trading and banking book risks, especially in light of moderation in net interest margins, it recommended. Giving details about its accounts for 2024-25, RBI said the size of the balance sheet as on March 31, 2025 increased by 8.20 per cent year on year. While income for the year increased by 22.77 per cent, expenditure increased by 7.76 per....

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.... cent. The year ended with an overall surplus of Rs 2,68,590.07 crore as against Rs 2,10,873.99 crore in the previous year, resulting in an increase of 27.37 per cent. "The size of the balance sheet increased by Rs 5,77,718.72 crore, 8.20 per cent from Rs 70,47,703.21 crore as on March 31, 2024 to Rs 76,25,421.93 crore as on March 31, 2025," the report said. Increase on assets side was due t....

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....o rise in gold, domestic investments and foreign investments by 52.09 per cent, 14.32 per cent and 1.70 per cent, respectively. Exchange gain from foreign exchange transactions increased by about 33 per cent to Rs 1.11 lakh crore as on March 31, 2025 from Rs 83,615.86 crore a year ago. The Reserve Bank spent Rs 6,372.82 crore on printing of currency notes in the last fiscal, an increase of 25 ....

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....per cent from Rs 5,101.4 crore in the preceding financial year. The report said that the value and volume of banknotes in circulation increased by 6 per cent and 5.6 per cent, respectively, during 2024-25. "During 2024-25, the share of Rs 500 banknotes at 86 per cent, declined marginally in value terms," it said. In volume terms, Rs 500 denomination at 40.9 per cent, constituted the highest ....

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....share of the total banknotes in circulation, followed by Rs 10 denomination banknotes at 16.4 per cent. The lower denomination banknotes (Rs 10, Rs 20 and Rs 50) together constituted 31.7 per cent of total banknotes in circulation by volume. The withdrawal of Rs 2000 banknotes from circulation, initiated in May 2023, continued during the year and 98.2 per cent of Rs 3.56 lakh crore in circulat....

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....ion at the time of announcement have returned to the banking system up to March 31, 2025. The value and volume of coins in circulation increased by 9.6 per cent and 3.6 per cent, respectively, during 2024-25. Also, the value of e-rupee in circulation increased by 334 per cent during 2024-25. The supply of notes increased by 24.69 per cent from 2,43,000 lakh pieces during the year 2023-24 to ....

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....3,03,000 lakh pieces during 2024-25. Currency in circulation includes banknotes, central bank digital currency (CBDC) and coins. Presently, banknotes in circulation comprise denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000. The Reserve Bank is no longer printing banknotes of denominations of Rs 2, Rs 5 and Rs 2000. Coins in circulation comprise denominatio....

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....ns of 50 paise and Re 1, Rs 2, Rs 5, Rs 10 and Rs 20. On counterfeit notes, the report said that during 2024-25, out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 4.7 per cent were detected at the Reserve Bank. The counterfeit notes detected in the denominations of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 2000 declined during 2024-25, while those in Rs 200 and Rs 50....

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....0 denominations increased by 13.9 and 37.3 per cent, respectively, as compared with the previous year. PTI NKD NKD ANU ANU<BR> News - Press release - PIB....