RBI Annual Report FY 2025-26 Part 28 explains RBI’s balance sheet, income, expenditure, surplus transfer, reserves, revaluation accounts and accounting policies.

The RBI Annual Report FY 2025-26 provides an unusually important set of figures for examination preparation because Chapter XII moves from policy and operations to the financial statements of the Reserve Bank itself. The year ended March 31, 2026 saw RBI’s income rise to ₹4,27,684.15 crore, expenditure rise to ₹1,41,091.69 crore, and the surplus payable to the Central Government reach ₹2,86,588.46 crore. At the same time, the RBI’s balance sheet expanded substantially, supported particularly by higher gold valuations and rupee depreciation.

For the RBI Grade B promotion exam, Grade B, UPSC, IBPS and banking interviews, this chapter is important because it tests a different skill: Can you understand how a central bank’s balance sheet works, rather than merely memorise macroeconomic numbers?

1. The Big Picture: What Happened to RBI’s Balance Sheet?

The RBI’s balance sheet expanded during 2025-26.

A major reason was the increase in valuation of:

gold; and
foreign-currency assets,

along with rupee depreciation.

The Annual Report notes that the RBI’s balance-sheet size stood at:

26.4% of GDP at end-March 2026

compared with:

23.7% of GDP at end-March 2025.

This is a critical number.

Exam Point

Do not interpret an increase in RBI’s balance-sheet size as simply meaning that the RBI “printed more money”.

The balance sheet contains multiple components, including:

reserve money;
deposits;
revaluation accounts;
investments;
gold;
loans and advances;
other assets and liabilities.

The composition matters.

2. RBI’s Income Statement: The Most Important Numbers

The RBI’s income statement for 2025-26 is one of the most important tables in the Annual Report.

RBI Income and Expenditure

₹ crore

Item	2024-25	2025-26
Interest Income	2,10,687.64	2,35,579.79
Other Income	1,27,620.45	1,92,104.36
Total Income	3,38,308.09	4,27,684.15
Total Expenditure	69,714.02	1,41,091.69
Available Balance	2,68,594.07	2,86,592.46
Surplus payable to GoI	2,68,590.07	2,86,588.46

Key observation

Total income increased much faster than expenditure.

But the rise in expenditure was also substantial, particularly because of higher provisions.

3. Where Did RBI’s Income Come From?

The RBI’s income is broadly divided into:

Interest income
Other income

The Annual Report’s accounting schedules provide the detailed composition.

3.1 Interest Income

Interest income increased from:

₹2,10,687.64 crore → ₹2,35,579.79 crore

during 2025-26.

The major components were:

Component	2025-26 ₹ crore
Interest on domestic rupee securities	1,17,739.57
Net interest on LAF operations	–8,681.73
Interest on SDF	–10,599.55
Interest on MSF operations	118.31
Interest on loans and advances	1,787.94
Interest income from foreign securities	1,07,678.67
Net interest on foreign repo/reverse repo	129.42
Interest on deposits	27,407.16
Total	2,35,579.79

Important conceptual point

The negative figures for net interest on LAF operations and interest on SDF should not be treated as errors.

They represent interest costs borne by RBI on relevant liquidity operations.

4. Other Income: The Big Driver

Other income rose sharply:

₹1,27,620.45 crore → ₹1,92,104.36 crore

in 2025-26.

The dominant component was:

Exchange gain/loss from foreign-exchange transactions: ₹1,68,906.37 crore

Other significant foreign-source components included:

amortisation of premium/discount on foreign securities: ₹16,354.18 crore
profit/loss on sale and redemption of foreign securities: ₹3,503.49 crore
miscellaneous income: ₹3,676.25 crore.

Why is this important?

It explains why RBI’s income cannot be understood like the profit of an ordinary commercial bank.

RBI operates with:

foreign-currency assets;
gold;
domestic securities;
liquidity facilities;
foreign-exchange operations;
monetary-policy operations.

Therefore, its financial results are strongly influenced by market valuation, exchange movements and central-bank operations.

5. RBI’s Expenditure: What Increased?

Total expenditure increased from:

₹69,714.02 crore → ₹1,41,091.69 crore

The largest components in 2025-26 included:

Expenditure item	₹ crore
Provisions	1,09,379.64
Employee cost	10,136.31
Miscellaneous expenses	10,193.96
Agency charges	4,880.05
Printing of notes	4,875.20
Depreciation	779.20
Remittance of currency	170.82

The standout number

Provisions = ₹1,09,379.64 crore

This is the single most important expenditure figure to remember.

6. RBI’s Surplus Transfer to the Government

After accounting for expenditure, provisions and specified contributions, the RBI had an available balance of:

₹2,86,592.46 crore

After contributions of ₹1 crore each to four specified funds, the amount payable to the Central Government was:

₹2,86,588.46 crore

This is popularly described as the RBI surplus transfer to the Government.

7. Why Does RBI Transfer Its Surplus?

This is an important conceptual question.

The RBI is wholly owned by the Government of India.

The Annual Report explains that under Section 47 of the RBI Act, 1934, after making provisions for:

bad and doubtful debts;
depreciation in assets;
contributions to staff and superannuation funds; and
other matters for which provisions are required,

the balance of RBI’s profits is required to be paid to the Central Government.

Another important provision

Under Section 48 of the RBI Act, 1934, the RBI is not liable to pay income tax or super tax on its income, profits or gains.

Exam Trap

Do not write:

“RBI transfers all its income to the Government.”

Wrong.

RBI first:

earns income → incurs expenditure → makes provisions → makes specified contributions → transfers the surplus.

8. RBI’s Capital: Surprisingly Small

One of the most interesting features of the RBI’s balance sheet is its paid-up capital.

The RBI was established as a private shareholders’ bank in 1935 with initial paid-up capital of:

₹5 crore

It was nationalised effective:

January 1, 1949

and the entire ownership is vested in the Government of India.

Despite nationalisation, the paid-up capital continues to be:

₹5 crore.

Exam Point

RBI paid-up capital = ₹5 crore

Do not confuse this with:

Reserve Fund;
Contingency Fund;
Available Realised Equity;
total balance sheet size.

9. RBI Reserve Fund

The original Reserve Fund was:

₹5 crore

It was created under Section 46 of the RBI Act, 1934.

Subsequently, ₹6,495 crore was credited from gains on periodic revaluation of gold up to October 1990.

Thus, the Reserve Fund reached:

₹6,500 crore

and has remained static since then.

The Annual Report explains that subsequent unrealised gains/losses from gold and foreign-currency valuation are instead recorded through the Currency and Gold Revaluation Account (CGRA).

10. Other Reserves

Two important funds appear under “Other Reserves”:

National Industrial Credit (Long Term Operations) Fund

Created in July 1964
Under Section 46C
Balance at March 31, 2026: ₹35 crore

National Housing Credit (Long Term Operations) Fund

Created in January 1989
Under Section 46D
Balance at March 31, 2026: ₹209 crore

Together:

Other Reserves = ₹244 crore.

Two National Rural Credit funds under Section 46A are maintained by NABARD, with ₹1 crore each transferred annually.

11. RBI’s Deposits: A Major Liability

Total deposits with RBI increased from:

₹17,17,404.03 crore

to:

₹19,16,692.11 crore

or by 11.6% during 2025-26.

They include balances maintained by:

Government;
banks;
financial institutions outside India;
foreign central banks;
international financial institutions;
RBI employee funds;
DEA Fund;
reverse repo/SDF-related balances; and others.

11.1 Deposits of Banks

Bank deposits with RBI declined:

18.3%

from ₹9,91,488.49 crore to:

₹8,10,124.48 crore

The principal reason identified by the Annual Report was the reduction in CRR from 4% to 3% of NDTL during the year.

This provides an excellent connection between monetary policy and the RBI balance sheet.

Chain to remember

CRR cut → lower balances maintained by banks with RBI → decline in bank deposits liability of RBI.

12. Revaluation Accounts: The Most Misunderstood Area

This is where serious candidates separate themselves from rote learners.

The RBI holds substantial:

gold;
foreign-currency assets;
foreign securities;
domestic securities; and
foreign-exchange forward contracts.

Changes in their market value do not automatically become ordinary realised income.

Instead, relevant unrealised gains/losses are recorded in revaluation accounts.

The major accounts are:

CGRA – Currency and Gold Revaluation Account
IRA-FS – Investment Revaluation Account – Foreign Securities
IRA-RS – Investment Revaluation Account – Rupee Securities
FCVA – Foreign Exchange Forward Contracts Valuation Account.

13. Currency and Gold Revaluation Account — CGRA

CGRA is particularly important.

Unrealised gains/losses arising from valuation of:

foreign-currency assets; and
gold

are recorded in CGRA rather than the income account.

Thus, CGRA acts as a buffer against:

exchange-rate fluctuations; and
gold-price fluctuations.

CGRA balance

Date	CGRA
March 31, 2025	₹13,02,964.89 crore
March 31, 2026	₹21,68,530.23 crore

The increase was mainly attributed to:

depreciation of the rupee against major currencies; and
increase in gold prices.

Exam logic

Rupee depreciation + higher gold prices → higher valuation of RBI’s gold/foreign assets → CGRA increases.

This is one of the most important analytical relationships in Chapter XII.

14. Investment Revaluation Account — Foreign Securities

Foreign dated securities are marked to market daily.

Unrealised gains/losses are recorded in IRA-FS.

The balance moved from:

–₹81,366.87 crore

to:

–₹90,833.07 crore

at March 31, 2026.

The Annual Report attributes this mainly to hardening yields across major jurisdictions.

The debit balance was adjusted against the Contingency Fund on March 31, 2026 and reversed on the first working day of the following accounting year.

Consequently:

IRA-FS closing balance = Nil

15. Investment Revaluation Account — Rupee Securities

IRA-RS captures unrealised gains/losses from relevant rupee securities and oil bonds.

Its balance changed from:

+₹16,843.35 crore

to:

–₹30,603.99 crore

during the year.

Again, the principal reason was hardening of yields across the curve.

The debit balance was adjusted against the Contingency Fund and subsequently reversed.

Therefore:

IRA-RS closing balance = Nil

16. Foreign Exchange Forward Contracts Valuation Account — FCVA

Mark-to-market valuation of outstanding forward contracts at March 31, 2026 resulted in:

Net unrealised loss of ₹43,403.23 crore

compared with a net unrealised gain of ₹6,985.19 crore a year earlier.

The debit balance was adjusted against the Contingency Fund at year-end and reversed on the first working day of the following year.

Thus:

FCVA closing balance = Nil

The corresponding Provision for Forward Contracts Valuation Account (PFCVA) stood at:

₹43,403.23 crore

at March 31, 2026.

17. Contingency Fund: RBI’s Main Risk Provision

The Contingency Fund (CF) is a specific provision intended to meet unexpected and unforeseen contingencies.

These include:

depreciation in securities;
risks arising from monetary policy operations;
exchange-rate policy operations;
systemic risks; and
risks arising from special responsibilities of the RBI.

During 2025-26, ₹1,09,379.64 crore was provided towards CF to maintain Available Realised Equity (ARE) at 6.5% of the balance-sheet size.

The CF balance at March 31, 2026 was:

₹5,68,333.19 crore

compared with ₹5,42,426.96 crore a year earlier.

18. Asset Development Fund — ADF

The Asset Development Fund (ADF) was created in:

1997-98

Its purpose is specifically connected with:

investments in subsidiaries and associate institutions; and
internal capital expenditure.

No provision was made towards ADF in 2025-26.

Balance at March 31, 2026:

₹22,974.68 crore

19. Available Realised Equity — ARE

This is a very important concept.

Under RBI’s Economic Capital Framework (ECF), Available Realised Equity consists of:

Capital;
Reserve Fund;
Contingency Fund; and
Asset Development Fund.

ARE at March 31, 2026

Component	₹ crore
Capital	5.00
Reserve Fund	6,500.00
Contingency Fund	5,68,333.19
ADF	22,974.68
Available Realised Equity	5,97,812.87
ARE as % of balance sheet	6.5%

Remember

ARE = Capital + Reserve Fund + CF + ADF

20. What Is the Economic Capital Framework?

The RBI adopted the Economic Capital Framework (ECF) in August 2019 following the recommendations of an Expert Committee.

The framework was subsequently internally reviewed and the revised framework was approved by the Central Board in May 2025.

The key idea is to determine an appropriate level of risk buffers for the RBI while balancing:

financial resilience;
risk-bearing capacity; and
transfer of surplus to the Government.

The 2025-26 accounts show the importance of the ECF through the target of maintaining ARE at 6.5% of balance-sheet size.

21. Issue Department and Currency Liability

The RBI Act, 1934 requires the Issue Department to remain separate and distinct from the Banking Department.

The Issue Department’s assets comprise, among other things:

gold;
foreign securities;
rupee coins; and
rupee securities,

subject to the statutory requirements described in the Annual Report.

Its liabilities correspond to currency notes in circulation.

22. Notes Issued: Physical Currency + CBDC-R

“Notes Issued” increased by:

11.8%

from ₹36,87,827.04 crore to:

₹41,24,766.88 crore

at March 31, 2026.

Importantly, this includes banknotes in:

physical form; and
digital form.

CBDC-R

The value of CBDC-R / e₹-Retail stood at:

₹771.66 crore

at March 31, 2026,

compared with ₹1,016.46 crore a year earlier.

CBDC-W

The balance of CBDC-W / e₹-Wholesale was:

Nil

at March 31, 2026.

The Annual Report cautions that e₹-W balances should not be interpreted as transaction volumes/values because participating banks and non-banks may use auto-redemption into their underlying current accounts at the end of the day.

23. RBI’s Gold Holdings in the Balance Sheet

Gold is a major RBI asset.

The balance-sheet schedule shows total gold increasing from:

₹6,68,162.34 crore

to:

₹10,94,309.49 crore

during 2025-26.

This is important because the rise reflects valuation effects as well as the RBI’s gold holdings.

And this directly connects with:

Gold price increase → higher gold valuation → higher CGRA → larger balance sheet.

24. Foreign Investments

RBI’s foreign investments increased from:

₹48,83,532.84 crore

to:

₹52,68,234.26 crore

during 2025-26.

These investments form a major part of the RBI’s foreign-asset side and are linked to the management of India’s foreign-exchange reserves.

25. Domestic Investments

Domestic investments increased substantially:

₹15,58,573.83 crore → ₹22,58,591.14 crore

during 2025-26.

This connects directly with RBI’s government-securities operations and liquidity management.

26. Loans and Advances

Total loans and advances increased from:

₹4,34,710.24 crore

to:

₹4,77,218.69 crore.

The largest component was loans and advances to scheduled commercial banks, at:

₹2,56,062 crore

in 2025-26.

27. RBI’s Investments in Subsidiaries and Associates

RBI’s investment in subsidiaries/associates remained:

₹2,063.60 crore

The components were:

Institution	Investment ₹ crore
DICGC	50
BRBNMPL	1,800
ReBIT	50
NCFE	30
IFTAS	33.60
RBIH	100
Total	2,063.60

This is useful for connecting Chapter XII with the technology, payments, currency and financial-inclusion chapters covered earlier in this series.

28. RBI Accounting Policies: High-Value Exam Area

The Annual Report contains a detailed Statement of Significant Accounting Policies.

These are not ordinary textbook accounting policies; they reflect the special nature of a central bank.

28.1 Basis of Preparation

RBI’s financial statements are prepared according to:

the RBI Act, 1934;
notifications issued under it; and
the form prescribed by the RBI General Regulations, 1949.

They are based on historical cost, except where modified to reflect:

revaluation; and/or
amortisation.

29. Revenue Recognition

Income and expenditure are recognised on an:

Accrual basis

There is an important exception:

Penal interest charged from banks is accounted for only when there is certainty of realisation.

Dividend income is recognised on accrual when the right to receive is established.

30. Gold Valuation

This is a very probable objective question.

Gold, including Gold Deposit, is revalued:

Daily

at:

90% of the LBMA gold price

converted using the rupee-dollar market exchange rate.

Unrealised valuation gains/losses are recorded in:

Currency and Gold Revaluation Account (CGRA).

Memory trick

Gold → 90% LBMA → Daily → CGRA

31. Foreign-Currency Assets

Foreign-currency assets and liabilities are generally translated:

Daily

at prevailing market exchange rates.

Unrealised gains/losses are accounted for in:

CGRA.

This explains why movements in the rupee can have a significant effect on the RBI’s balance sheet.

32. Foreign Securities: Mark-to-Market

Foreign securities, except specified categories such as:

T-Bills;
Commercial Papers; and
certain Held-to-Maturity securities,

are marked to market daily.

Unrealised gains/losses are recorded in:

IRA-FS.

Foreign T-Bills and Commercial Papers are carried at cost adjusted for daily amortisation of discount/premium.

33. Domestic Securities

Relevant rupee securities and oil bonds are marked to market:

on the last business day of each week ending Friday; and
on the last business day of each month.

Unrealised gains/losses are recorded in:

IRA-RS.

T-Bills are carried at cost adjusted for daily amortisation.

Investments in shares of subsidiaries are valued at cost.

Certain securities earmarked for staff funds, DEA Fund and PIDF are treated as Held to Maturity and carried at amortised cost.

34. LAF, MSF and SDF: Accounting Treatment

This is a very good MCQ area.

Facility	Accounting treatment
LAF Repo	Lending → Loans and Advances
MSF	Lending → Loans and Advances
LAF Reverse Repo	Deposit
SDF	Deposit

Easy memory rule

RBI gives money → asset/loan

RBI receives money → deposit/liability

35. Foreign Repo and Reverse Repo

The RBI’s reserve-management accounting also distinguishes:

Foreign Repo

Treated as borrowing of foreign currencies and shown under deposits.

Foreign Reverse Repo

Treated as lending of foreign currencies and shown under loans and advances.

36. Fixed Assets and Depreciation

RBI’s fixed assets are generally recorded at:

Cost less depreciation

with specified treatment for art, paintings and freehold land.

For many fixed assets:

electrical installations, UPS, motor vehicles, furniture, fixtures, CVPS/SBS machines etc. → 5 years / 20%
computers, servers, microprocessors, printers, software, laptops, e-book readers/iPads etc. → 3 years / 33.33%

Depreciation follows a straight-line basis.

37. Land and Buildings

Land

Leasehold >99 years → treated as perpetual lease/freehold; no amortisation.
Leasehold up to 99 years → amortised over lease period.
Freehold land → no amortisation.

Buildings

Normal useful life:

30 years

with straight-line depreciation.

38. Employee Benefits

RBI’s employee-related accounting includes:

monthly contributions to Provident Fund charged to income in the relevant year; and
long-term employee-benefit liabilities based on actuarial valuation under the Projected Unit Credit method.

39. The Five-Year Revaluation Snapshot

This table is worth memorising because it helps understand the changing risk buffers.

₹ crore

Date	CGRA	IRA-RS	FCVA	PFCVA
Mar 2022	9,13,389.29	18,577.81	2,576.90	0
Mar 2023	11,24,733.16	0	1,354.96	0
Mar 2024	11,30,793.34	0	170.37	0
Mar 2025	13,02,964.89	16,843.35	6,985.19	0
Mar 2026	21,68,530.23	0	0	43,403.23

The major 2025-26 story is therefore:

CGRA ↑ sharply, while debit balances in IRA-FS, IRA-RS and FCVA were adjusted against CF and subsequently reversed.

40. The Complete RBI Balance-Sheet Mental Model

For examination purposes, do not memorise the balance sheet as a random list.

Think of it like this:

RBI Assets

Gold

Foreign investments

Domestic investments

Loans and advances

Other assets

↓

RBI Liabilities

Currency / Notes issued

Deposits

Other liabilities

Revaluation accounts

Capital and reserves

This framework helps you understand why changes in:

gold prices;
exchange rates;
G-sec yields;
liquidity operations;
CRR;
foreign securities valuations

can affect RBI’s financial statements.

41. Most Important Numbers for the Exam

Indicator	FY 2025-26
RBI balance sheet / GDP	26.4%
Total income	₹4,27,684.15 cr
Interest income	₹2,35,579.79 cr
Other income	₹1,92,104.36 cr
Total expenditure	₹1,41,091.69 cr
Provisions	₹1,09,379.64 cr
Available balance	₹2,86,592.46 cr
Surplus payable to GoI	₹2,86,588.46 cr
Capital	₹5 cr
Reserve Fund	₹6,500 cr
Contingency Fund	₹5,68,333.19 cr
ADF	₹22,974.68 cr
ARE	₹5,97,812.87 cr
ARE / balance sheet	6.5%
CGRA	₹21,68,530.23 cr
Total deposits	₹19,16,692.11 cr
Bank deposits	₹8,10,124.48 cr
Gold	₹10,94,309.49 cr
Foreign investments	₹52,68,234.26 cr
Domestic investments	₹22,58,591.14 cr
Loans & advances	₹4,77,218.69 cr
Notes issued	₹41,24,766.88 cr
CBDC-R	₹771.66 cr

42. High-Probability MCQs

Q1. RBI’s paid-up capital as on March 31, 2026 was:

A. ₹5 crore
B. ₹500 crore
C. ₹6,500 crore
D. ₹10,000 crore

Answer: A — ₹5 crore

Q2. RBI’s Reserve Fund stood at:

Answer: ₹6,500 crore

Q3. Which account records unrealised valuation gains/losses on gold and foreign-currency assets?

Answer: Currency and Gold Revaluation Account (CGRA).

Q4. Gold is revalued by RBI at:

Answer: 90% of the LBMA gold price converted using the rupee-dollar market exchange rate.

Q5. RBI’s Available Realised Equity at March 31, 2026 was:

Answer: ₹5,97,812.87 crore

Q6. ARE as a percentage of balance-sheet size was:

Answer: 6.5%

Q7. Which department/facility is treated as a deposit in RBI accounting?

A. LAF Repo
B. MSF
C. SDF
D. Loans to banks

Answer: C — SDF

Q8. RBI’s surplus payable to the Central Government in 2025-26 was:

Answer: ₹2,86,588.46 crore

Q9. RBI’s Contingency Fund at March 31, 2026 was:

Answer: ₹5,68,333.19 crore

Q10. The revised Economic Capital Framework was approved by the Central Board in:

Answer: May 2025

43. Descriptive Question Framework

Question:

“Discuss the major changes in the financial position of the Reserve Bank during 2025-26.”

A strong answer should cover:

Introduction

The RBI’s balance sheet expanded substantially during 2025-26, while income and surplus also increased.

Body

Balance sheet at 26.4% of GDP.
Income ₹4.28 lakh crore.
Interest and other income.
Expenditure and provisions.
Surplus transfer of ₹2.866 lakh crore.
CGRA expansion due to rupee depreciation and higher gold prices.
Contingency Fund and ARE.
Economic Capital Framework.
Gold, foreign and domestic investments.
Accounting treatment of revaluation gains/losses.

Conclusion

The accounts demonstrate that RBI’s financial strength is closely linked to its reserve-management operations, monetary functions and risk-buffer framework rather than conventional commercial-bank profitability.

Key Takeaways — RBI Annual Report FY 2025-26 Part 28

RBI’s balance sheet reached 26.4% of GDP at end-March 2026.
Total RBI income was ₹4,27,684.15 crore.
Interest income was ₹2,35,579.79 crore.
Other income was ₹1,92,104.36 crore.
Total expenditure was ₹1,41,091.69 crore.
Provisions amounted to ₹1,09,379.64 crore.
Surplus payable to the Central Government was ₹2,86,588.46 crore.
RBI’s paid-up capital remains only ₹5 crore.
Reserve Fund remains ₹6,500 crore.
Contingency Fund stood at ₹5,68,333.19 crore.
Available Realised Equity was ₹5,97,812.87 crore, equal to 6.5% of balance-sheet size.
CGRA increased to ₹21,68,530.23 crore, mainly because of rupee depreciation and higher gold prices.
Total gold on the balance sheet reached ₹10,94,309.49 crore.
Gold is revalued daily at 90% of the LBMA gold price converted at the rupee-dollar market exchange rate.
LAF Repo/MSF = Loans and Advances; LAF Reverse Repo/SDF = Deposits for RBI accounting.
RBI’s accounting statements are prepared under the RBI Act, 1934 and RBI General Regulations, 1949.
The revised Economic Capital Framework was approved by the Central Board in May 2025.
RBI’s surplus transfer is made only after expenditure, provisions and specified contributions.

One-Minute Revision

RBI FY26 Accounts = Remember 10 numbers

26.4% → Balance sheet/GDP

₹4.28 lakh cr → Income

₹1.41 lakh cr → Expenditure

₹2.87 lakh cr → Surplus to GoI

₹5 cr → Capital

₹6,500 cr → Reserve Fund

₹5.68 lakh cr → Contingency Fund

₹5.98 lakh cr → ARE

6.5% → ARE / Balance Sheet

₹21.69 lakh cr → CGRA

Accounting shortcuts

Gold → 90% LBMA → Daily → CGRA

FX assets → Daily → CGRA

Foreign securities → MTM → IRA-FS

Rupee securities → MTM → IRA-RS

Forward contracts → MTM → FCVA/PFCVA

Repo/MSF → Loans & Advances

Reverse Repo/SDF → Deposits

Final Exam Takeaway

The deepest lesson from this chapter is that the RBI’s accounts are not ordinary corporate accounts.

Its financial position reflects its role as:

currency issuer + monetary authority + banker to government + banker to banks + manager of foreign-exchange reserves + financial-market operator.

Therefore, movements in gold prices, exchange rates, interest rates, liquidity operations and reserve-management assets can materially change its balance sheet and revaluation accounts.

That is precisely why CGRA, Contingency Fund, Economic Capital Framework, Available Realised Equity and surplus transfer are much more important for RBI examinations than simply memorising the headline profit number.

Source

All figures, accounting treatments and policy descriptions in this article are drawn from Chapter XII — The Reserve Bank’s Accounts for 2025-26, including the Balance Sheet, Income Statement, schedules, Significant Accounting Policies and Notes to Accounts in the uploaded RBI Annual Report.

Next Part

Part 29 will cover the RBI Annual Report FY 2025-26: Major Policy Announcements, Month-by-Month, converting the Annual Report’s chronology into an exam-oriented timeline of the most important RBI actions from April 2025 to March 2026.