Every action of the Reserve Bank leaves a trace on one document: its balance sheet. When the RBI prints a note, buys a government bond, buys dollars from a bank or takes money into the Standing Deposit Facility, one line on the asset side and one on the liability side move. On 31 March 2026 that balance sheet stood at ₹91,97,121.08 crore (about ₹92 lakh crore), up 20.6% in a year and equal to roughly 26.6% of India's GDP. This part reads it line by line: what the RBI owes, what it owns, how it earns, why most of its "profit" is set aside or paid to the government, and how monetary operations show up in it. All figures are from the RBI's Annual Report 2025-26 (Chapter XII, released on 29 May 2026) unless stated otherwise.
You will get more out of this part if you know the RBI's functions (Part 2) and its policy rates and LAF (Part 4). The tools that move the balance sheet have their own parts: open market operations and liquidity, LAF and MSF, currency in circulation and India's forex reserves. The annual payout to the government is covered in RBI surplus transfer.
In the news
- 16 October 2026: Forex reserves at US$726.03 billion. RBI data showed reserves fell by US$8.58 billion in the week to 9 October, with foreign currency assets at US$597.6 billion and gold at US$105.1 billion. Why it matters for the exam: most of the reserves (foreign currency assets and gold) sit on the RBI's balance sheet, so weekly reserve changes are balance-sheet changes.
- 7 October 2026: OMO sales to absorb surplus. The Governor reported ₹1.0 lakh crore of open market sales since the August policy, alongside VRRR auctions, as surplus liquidity swelled. Why it matters for the exam: an OMO sale shrinks the RBI's domestic investments and banks' deposits with it by the same amount.
- 29 May 2026: Annual Report 2025-26 released. The balance sheet grew 20.6% to ₹91,97,121.08 crore. Domestic assets rose to 29.1% of the total from 25.7%, and foreign assets fell to 70.9% from 74.3%. Why it matters for the exam: domestic investments (+44.9%) and gold (+63.8%) drove the growth.
- 22 May 2026: Record surplus of ₹2,86,588.46 crore. The 623rd Central Board meeting approved the surplus for 2025-26, after a provision of ₹1,09,379.64 crore that kept the Contingent Risk Buffer at 6.5% of the balance sheet. Why it matters for the exam: the CRB was cut from 7.5% the year before, and the ECF range is now 4.5–7.5%.
- 18 February 2026: OMO purchases near half of G-sec issuance. PTI reported RBI OMO purchases of ₹6,39,203 crore in 2025-26 up to 13 February, about 47% of the Centre's gross issuance of ₹13.65 lakh crore. Why it matters for the exam: this is why the RBI's holdings of rupee securities rose by ₹7 lakh crore in the year.
- 24 December 2025: ₹2 lakh crore OMO purchases and a US$10 billion swap announced. The RBI said it would buy bonds in four ₹50,000 crore tranches (29 December, 5, 12 and 22 January) and run a three-year US$10 billion buy/sell swap on 13 January. Why it matters for the exam: both add durable rupee liquidity, one through domestic assets and one through foreign assets.
- 5 December 2025: Rate cut with ₹1 lakh crore of OMO purchases. Alongside the repo cut to 5.25%, the RBI announced ₹1 lakh crore of OMO purchases and a US$5 billion three-year buy/sell swap. Why it matters for the exam: a buy/sell swap first raises foreign currency assets and bank reserves, and reverses at maturity.
- 29 November 2025: CRR reaches 3%. The last tranche of the 100 bp CRR cut took effect. Banks' deposits with the RBI fell 18.3% in 2025-26, from ₹9,91,488 crore to ₹8,10,124 crore, "mainly on account of" the cut. Why it matters for the exam: CRR balances are an RBI liability, so a CRR cut shows up as lower bank deposits.
Why the balance sheet matters
The central bank's ledger
A commercial bank's balance sheet shows deposits on one side and loans on the other. A central bank's is different in three ways:
- Its largest liability is money itself. Currency notes and banks' reserves are claims on the RBI. Together they make up most of reserve money (M0), the base on which the rest of the money supply is built.
- It can create its own liabilities. When the RBI buys an asset, it pays by crediting a bank's current account with itself. No one has to lend it the money first.
- It is not run for profit. Its income comes as a by-product of monetary and reserve operations, and after provisions the balance goes to the government under Section 47 of the RBI Act.
The accounting year
The RBI kept a July–June accounting year for decades. In 2020 it moved to April–March, the government's fiscal year, as the Bimal Jalan committee had recommended. The transition year 2020-21 ran for nine months only (July 2020 to March 2021). Since then the balance sheet date has been 31 March, and the Annual Report and surplus decision come in late May.
One balance sheet, two departments
Section 23 of the RBI Act requires note issue to be run by an Issue Department "separated and kept wholly distinct from the Banking Department". The two still exist in the accounts. Since 2014-15, following the Technical Committee chaired by Y.H. Malegam, the RBI has published a single balance sheet, with the Issue Department's liabilities and assets shown separately on its face.
- The Issue Department's only liability is notes issued. Its assets are the backing for those notes: gold, foreign securities and rupee coin. Under Section 33(2), gold and foreign securities must be worth at least ₹200 crore, of which gold at least ₹115 crore. This is the minimum reserve system.
- The Banking Department holds everything else: deposits, reserves and buffers on one side, and gold, foreign and domestic investments and loans on the other.
The RBI also sends the government a weekly account of both departments under Section 53(1). It appears in the Weekly Statistical Supplement, so the balance sheet can be tracked between annual reports.
The size of the balance sheet
| As on 31 March | Size (₹ crore) | Growth |
|---|---|---|
| 2021 | 57,07,669.13 | 6.99% (nine-month year) |
| 2022 | 61,90,302.27 | 8.5% |
| 2023 | 63,44,756.24 | 2.5% |
| 2024 | 70,47,703.21 | 11.1% |
| 2025 | 76,25,421.93 | 8.2% |
| 2026 | 91,97,121.08 | 20.6% |
The 2025-26 jump of ₹15,71,699.15 crore had three causes:
- Bond buying. Domestic investments rose by ₹7.0 lakh crore (44.9%) as the RBI bought government securities to add durable liquidity.
- Gold prices. The RBI's gold rose by only 0.94 tonnes (from 879.58 to 880.52 tonnes), but its value rose 63.8%, from ₹6,68,162 crore to ₹10,94,309 crore. The cause was the higher gold price and a weaker rupee.
- A weaker rupee. Foreign investments rose 7.9% in rupee terms. In dollars, foreign currency assets in the reserves actually fell from US$567.56 billion to US$552.28 billion. The rupee value rose because each dollar was worth more rupees: the two tables imply about ₹94.8 per dollar on 31 March 2026.
So a large part of the growth is valuation, not new operations. That is why the matching liability that grew fastest was the revaluation accounts (+63.4%).
Liabilities: what the RBI owes
The table below lists the liabilities on 31 March 2026, in ₹ crore.
| Liability | 31 Mar 2025 | 31 Mar 2026 | Share 2026 |
|---|---|---|---|
| Notes issued | 36,87,827.04 | 41,24,766.88 | 44.8% |
| Revaluation accounts | 13,26,793.43 | 21,68,530.23 | 23.6% |
| Deposits | 17,17,404.03 | 19,16,692.11 | 20.8% |
| Contingency Fund | 5,42,426.96 | 5,68,333.19 | 6.2% |
| Other liabilities | 3,21,248.79 | 3,89,074.99 | 4.2% |
| Asset Development Fund | 22,974.68 | 22,974.68 | 0.25% |
| Capital, Reserve Fund and other reserves | 6,747.00 | 6,749.00 | 0.07% |
| Total | 76,25,421.93 | 91,97,121.08 | 100% |
Notes issued (44.8%)
The biggest liability is the currency the RBI has issued: ₹41,24,766.88 crore, up 11.8%. Almost all of it, ₹41,23,983.55 crore, is notes in circulation. A small amount is held in the Banking Department (₹11.67 crore), and ₹771.66 crore is the retail digital rupee (e₹-R), down from ₹1,016.46 crore a year earlier. The wholesale e₹ balance was nil at year-end, because it is redeemed back to banks' current accounts every evening. The digital rupee is counted as a bank note, which is why it sits in this line. See the digital rupee.
A note is a liability that pays no interest. The RBI earns interest on the assets it bought with it, and this gain, called seigniorage, is the main reason a central bank is usually profitable.
Deposits (20.8%)
Deposits of ₹19,16,692.11 crore are the balances others keep with the RBI:
- Banks: ₹8,10,124.48 crore. These are mainly CRR balances and money for settlement. They fell 18.3% because the CRR came down from 4% to 3%. Scheduled commercial banks alone held ₹7,53,866.83 crore.
- Governments: only ₹5,043.89 crore (Centre ₹5,000.48 crore, states ₹43.41 crore). The government's cash surpluses are mostly invested, not left idle in this account.
- Financial institutions outside India: ₹1,64,785.85 crore. These are foreign-currency repos done as part of reserve management.
- Others: ₹9,36,737.89 crore, up 54%. This line includes the RBI staff provident fund, the Depositor Education and Awareness (DEA) Fund (₹1,12,564.29 crore), foreign central banks and, most importantly, money absorbed through the SDF and reverse repo. The Annual Report says the increase was "primarily due to increase in deposits under SDF and Reverse Repo by Government of India".
The accounting rule is worth remembering: LAF repo and MSF are "Loans and Advances" (assets); LAF reverse repo and SDF are "Deposits–Others" (liabilities).
Revaluation accounts (23.6%)
The RBI does not book unrealised gains and losses on gold and foreign currency as income. It parks them in revaluation accounts:
- Currency and Gold Revaluation Account (CGRA): ₹21,68,530.23 crore, up from ₹13,02,964.89 crore. It rises when the rupee weakens or gold rises, and falls when the rupee strengthens or gold falls. It is the first buffer against those risks. The jump of ₹8.66 lakh crore in 2025-26 came "mainly due to depreciation of rupee against major currencies and increase in price of gold".
- Investment Revaluation Account – Foreign Securities (IRA-FS): mark-to-market on foreign bonds. On 31 March 2026 it had a debit (loss) of ₹90,833.07 crore, because yields rose abroad.
- Investment Revaluation Account – Rupee Securities (IRA-RS): mark-to-market on G-secs. It swung from a credit of ₹16,843.35 crore to a debit of ₹30,603.99 crore as yields rose.
- Foreign Exchange Forward Contracts Valuation Account (FCVA): mark-to-market on the RBI's outstanding forward contracts. It showed a net loss of ₹43,403.23 crore (a gain of ₹6,985.19 crore a year earlier).
A credit balance is carried forward. A debit balance on 31 March is charged to the Contingency Fund and reversed on the first working day of the next year. That is why IRA-FS, IRA-RS and FCVA all show nil on the face of the 2026 balance sheet, while the Contingency Fund absorbed ₹1,64,840.29 crore of year-end losses.
Risk provisions: the Contingency Fund and the ADF (6.4%)
- The Contingency Fund (CF), ₹5,68,333.19 crore, is the main risk provision. It covers "unexpected and unforeseen contingencies", including losses on securities and risks from monetary and exchange-rate policy operations. It is topped up each year from income, and the top-up is set by the Economic Capital Framework (below).
- The Asset Development Fund (ADF), ₹22,974.68 crore, was created in 1997-98 for investments in subsidiaries and internal capital spending. Nothing was added in 2025-26.
Capital, Reserve Fund and other reserves (0.07%)
- Capital: ₹5 crore, the same as in 1935. The RBI started as a shareholders' bank and has been wholly government-owned since nationalisation on 1 January 1949.
- Reserve Fund: ₹6,500 crore. It began with ₹5 crore from the government (Section 46). Gold revaluation gains raised it to ₹6,500 crore by October 1990, and it has been frozen since, because revaluation gains now go to the CGRA.
- Other reserves: ₹244 crore, two old statutory funds (National Industrial Credit and National Housing Credit (Long Term Operations) Funds). Each receives ₹1 crore a year.
Other liabilities (4.2%)
Other liabilities of ₹3,89,074.99 crore include the surplus payable to the government (₹2,86,588.46 crore), which sits as a liability on 31 March until it is paid, the gratuity and superannuation fund (₹39,405.30 crore), and the new ₹43,403.23 crore provision against forward contract losses.
Assets: what the RBI owns
The table below lists the assets on 31 March 2026, in ₹ crore.
| Asset | 31 Mar 2025 | 31 Mar 2026 | Share 2026 |
|---|---|---|---|
| Foreign investments (FCA) | 48,83,532.84 | 52,68,234.26 | 57.3% |
| Domestic investments (G-secs) | 15,58,573.83 | 22,58,591.14 | 24.6% |
| Gold | 6,68,162.34 | 10,94,309.49 | 11.9% |
| Loans and advances | 4,34,710.24 | 4,77,218.69 | 5.2% |
| Other assets, subsidiaries, coin | 80,442.68 | 98,767.50 | 1.1% |
| Total | 76,25,421.93 | 91,97,121.08 | 100% |
Foreign currency assets (57.3%)
These are deposits with other central banks, the BIS and overseas commercial banks, foreign Treasury bills and bonds, and SDRs the RBI has bought from the government. Of the total, ₹37,36,151.53 crore sits in the Issue Department as backing for notes and ₹15,32,082.73 crore in the Banking Department. They earned 6.4% in 2025-26 (5.3% in 2024-25), counting interest, amortisation, capital gains and exchange gains.
Gold (11.9%)
The RBI held 880.52 tonnes on 31 March 2026:
- 312.32 tonnes in the Issue Department, backing notes and held in India;
- 568.20 tonnes in the Banking Department. Of this, 367.73 tonnes were in India and 200.47 tonnes abroad, against 200.60 and 367.60 tonnes a year earlier. In other words, about 167 tonnes moved home during the year.
Gold's share of assets rose from 8.8% to 11.9% on price alone. In dollar terms it was US$115.40 billion, up 47.6%.
Domestic investments (24.6%)
These are central and state government securities and oil bonds: ₹22,58,591.14 crore, up 44.9%, "mainly on account of net purchase of government securities". This line holds the RBI's OMO book. It is all in the Banking Department; Issue Department rupee securities were nil.
Loans and advances (5.2%)
- To banks: ₹2,56,062 crore, mainly LAF repo and MSF outstanding on 31 March.
- To state governments: ₹32,506.59 crore, in Ways and Means Advances and overdrafts. The Centre had no WMA outstanding.
- Others: ₹26,190.46 crore, to NHB, SIDBI and primary dealers.
- To financial institutions abroad: ₹1,62,459.64 crore, reverse repos in foreign currency, part of reserve management.
Other assets (1.1%)
These are accrued income (₹83,380.28 crore), fixed assets, and the RBI's investments of ₹2,063.60 crore in subsidiaries: DICGC, BRBNMPL (the note press), ReBIT, NCFE, IFTAS and the Reserve Bank Innovation Hub.
Domestic versus foreign
At 31 March 2026, 70.9% of assets were foreign (FCA, gold and loans to institutions abroad) and 29.1% domestic, against 74.3% and 25.7% a year earlier. The RBI's balance sheet is mostly a store of foreign reserves. This is typical of an emerging-market central bank, and the reason exchange-rate moves have such a large effect on it.
Income and expenditure
Where the income comes from
Total income was ₹4,27,684.15 crore (+26.4%), in two parts:
- Interest: ₹2,35,579.79 crore.
- Interest on rupee securities: ₹1,17,739.57 crore.
- Interest on foreign securities: ₹1,07,678.67 crore.
- Interest on foreign deposits: ₹27,407.16 crore.
- The LAF lines were negative. Net LAF interest was −₹8,681.73 crore and SDF interest −₹10,599.55 crore. With surplus liquidity, the RBI paid banks more on reverse repo and SDF than it earned on repo and MSF; the net cost was ₹19,162.97 crore.
- Other income: ₹1,92,104.36 crore. Most of it was the exchange gain on foreign exchange transactions: ₹1,68,906.37 crore. This is a realised gain: when the RBI sells dollars it bought at a lower historical cost, the difference is booked as income. Unrealised gains stay in the CGRA.
By source, foreign income was ₹3,27,655.54 crore (77%) and domestic income ₹1,00,028.61 crore (23%).
Where the money goes
Total expenditure was ₹1,41,091.69 crore (+102.4%). Of this, ₹1,09,379.64 crore was the provision to the Contingency Fund, so operating costs were only about ₹31,712 crore:
| Expenditure item | 2025-26 (₹ crore) |
|---|---|
| Provisions (to CF) | 1,09,379.64 |
| Employee cost | 10,136.31 |
| Agency charges (mainly commission to banks for government business) | 4,880.05 |
| Printing of notes | 4,875.20 |
| Others | 11,817.78 |
| Interest | 2.71 |
Note printing cost less than in 2024-25 (₹6,372.82 crore) because of a smaller note indent. The jump in total spending is almost all the bigger CF provision.
From income to surplus
| Step | ₹ crore |
|---|---|
| Income | 4,27,684.15 |
| Less operating expenditure | 31,712.05 |
| Net income before risk provisions | 3,95,972.10 |
| Less provision to Contingency Fund | 1,09,379.64 |
| Available balance | 2,86,592.46 |
| Less ₹1 crore each to four statutory funds | 4.00 |
| Surplus payable to the Central Government | 2,86,588.46 |
Under Section 48 the RBI pays no income tax.
The Economic Capital Framework
Why a framework is needed
How much of its income should the RBI keep? Keep too little and it may face a loss it cannot absorb. Keep too much and the government loses revenue for no good reason. Before 2019 the answer was decided case by case and was often disputed. The Expert Committee to Review the Extant Economic Capital Framework, chaired by former Governor Dr Bimal Jalan, was set up in December 2018 in consultation with the government. The Central Board accepted its recommendations at its 578th meeting on 26 August 2019.
The 2019 framework (Bimal Jalan)
- The RBI's capital has two parts: realised equity (capital, Reserve Fund, CF and ADF), which can absorb any loss, and revaluation balances (CGRA and the other accounts), which cover only market risk.
- Realised equity was to be kept at 6.5% to 5.5% of the balance sheet. This is the Contingent Risk Buffer (CRB): 5.5–4.5% for monetary and financial stability risks and 1.0% for credit and operational risks.
- Market risk was measured by Expected Shortfall at 99.5% confidence, with a tolerance down to 97.5%.
- Total economic capital could range from 24.5% to 20.0% of the balance sheet.
- The surplus distribution policy targets realised equity only. If realised equity is above its requirement, all net income goes to the government. If it is below, the RBI provisions first.
- The committee recommended periodic review every five years.
The Board then set the CRB at the lower bound of 5.5%. That released ₹52,637 crore of excess provisions, transferred with the 2018-19 surplus of ₹1,23,414 crore: a total of ₹1,76,051 crore. Available realised equity had been 6.8%. At the 6.5% upper bound the excess would have been only ₹11,608 crore.
The 2025 revision
The RBI reviewed the framework internally. The Central Board approved a revised ECF on 15 May 2025, applicable from 2024-25. The main changes:
- CRB widened to 6.0% ± 1.5%, that is 4.5% to 7.5% of the balance sheet (from 5.5–6.5%).
- Monetary and financial stability buffer widened to 5.0% ± 1.5% (3.5–6.5%), from 4.5–5.5%. The credit and operational risk requirement (1.0%) is unchanged.
- Market risk is now measured in an integrated way that includes off-balance-sheet positions such as forwards, and can include minor-currency assets. The Board may choose any confidence level between ES 99.5% and ES 97.5%.
- Surplus distribution: realised equity above 7.5% (after covering any shortfall in market-risk buffers) may be written back from the CF to income. If equity falls below the lower bound, "no surplus will be transferred to the Government till at least the minimum level of Required Realised Equity is achieved".
The CRB in practice
| Year | CRB level | Surplus to government (₹ crore) |
|---|---|---|
| 2021-22 | 5.5% | 30,307.45 |
| 2022-23 | 6.0% | 87,416.22 |
| 2023-24 | 6.5% | 2,10,873.99 |
| 2024-25 | 7.5% | 2,68,590.07 |
| 2025-26 | 6.5% | 2,86,588.46 |
The table shows the Board's choice. In 2024-25 it went to the top of the new range. In 2025-26 it came back to 6.5%, which helped the surplus reach a new record despite much higher year-end mark-to-market losses.
Worked examples
Example 1: how big was the CRB?
Available realised equity (ARE) on 31 March 2026:
- Capital ₹5 crore + Reserve Fund ₹6,500 crore + CF ₹5,68,333.19 crore + ADF ₹22,974.68 crore = ₹5,97,812.87 crore.
- As a share of the balance sheet: 5,97,812.87 ÷ 91,97,121.08 = 6.50%.
This is exactly the 6.5% the Board chose. A 1-percentage-point change in the CRB is worth 1% × ₹91,97,121 crore ≈ ₹91,971 crore. Had the Board kept 7.5%, it would have needed about ₹91,971 crore more in the CF, and the surplus would have been roughly ₹1.95 lakh crore instead of ₹2.87 lakh crore.
Example 2: tracing the Contingency Fund
How did the CF go from ₹5,42,426.96 crore to ₹5,68,333.19 crore?
| Step | ₹ crore |
|---|---|
| Opening balance, 31 March 2025 | 5,42,426.96 |
| Add back last year's IRA-FS charge, reversed on 1 April 2025 | + 81,366.87 |
| Add the 2025-26 provision | + 1,09,379.64 |
| Less year-end charges (IRA-FS 90,833.07 + FCVA 43,403.23 + IRA-RS 30,603.99) | − 1,64,840.29 |
| Closing balance, 31 March 2026 | 5,68,333.18 |
The ₹0.01 crore difference is rounding. The point: the CF does two jobs. It is the main risk buffer, and it temporarily absorbs year-end mark-to-market losses.
Example 3: the balance sheet as a share of GDP
Nominal GDP for 2025-26 was ₹346.36 lakh crore (provisional estimate, 5 June 2026, base 2022-23).
- 2025-26: ₹91.97 lakh crore ÷ ₹346.36 lakh crore = 26.6%.
- 2024-25: ₹76.25 lakh crore ÷ ₹318.07 lakh crore = 24.0%.
The balance sheet grew 20.6% while nominal GDP grew 8.9%, so the ratio rose by about 2.6 percentage points.
How monetary operations show up on the balance sheet
Every RBI operation is a pair of entries. The useful rule: anything the RBI buys adds to its assets and to bank reserves; anything it sells takes away from both. A change in the form of money (cash versus reserves) only reshuffles liabilities.
(a) OMO purchase of ₹50,000 crore
On 29 December 2025 the RBI bought ₹50,000 crore of government securities in an OMO auction:
| Assets | Liabilities |
|---|---|
| Domestic investments +₹50,000 crore | Deposits – banks +₹50,000 crore |
The sellers' banks get their RBI current accounts credited. Reserve money rises by ₹50,000 crore and the balance sheet grows by the same amount. An OMO sale, as in September 2026, reverses both entries.
(b) Buying US$2 billion in the forex market
Say the RBI buys US$2 billion from banks at ₹95 per dollar (close to the end-March 2026 rate):
| Assets | Liabilities |
|---|---|
| Foreign currency assets +₹19,000 crore | Deposits – banks +₹19,000 crore |
Rupee liquidity rises by ₹19,000 crore. If the RBI wants to sterilise this, it sells ₹19,000 crore of G-secs: domestic investments −₹19,000 crore and bank deposits −₹19,000 crore. The final result is a change in the mix of assets (more foreign, fewer domestic) with no change in reserve money. When the RBI sells dollars to defend the rupee, the entries run the other way and rupee liquidity drains.
(c) Repo and SDF
- A bank borrowing ₹10,000 crore in a repo: Loans and advances +₹10,000 crore; Deposits – banks +₹10,000 crore.
- A bank parking ₹10,000 crore in the SDF: Deposits – banks −₹10,000 crore; Deposits – others +₹10,000 crore. The total is unchanged, but the money is no longer available for settlement. In 2025-26 the RBI paid ₹10,599.55 crore of interest on such SDF balances.
(d) Cash withdrawal before Diwali
The public withdraws ₹20,000 crore in cash, and banks top up their tills by drawing on RBI balances:
| Assets | Liabilities |
|---|---|
| No change | Deposits – banks −₹20,000 crore; Notes issued +₹20,000 crore |
The balance sheet does not change size, but bank reserves fall. This is why festival-season currency demand drains liquidity and the RBI may need to inject money. More in currency in circulation.
(e) Rupee depreciation with no transaction
If the rupee falls from ₹90 to ₹95 a dollar, US$550 billion of FCA becomes worth ₹2.75 lakh crore more (550 × ₹5 = ₹2,750 billion). The entries are FCA +₹2.75 lakh crore and CGRA +₹2.75 lakh crore. No income is booked and no liquidity is created. This, plus gold, is how the CGRA grew by ₹8.66 lakh crore in 2025-26.
How big is the RBI compared with the Fed and the ECB?
| Central bank | Balance sheet | Date | Approx. share of GDP |
|---|---|---|---|
| RBI | ₹91.97 lakh crore | 31 Mar 2026 | 26.6% of 2025-26 GDP |
| US Federal Reserve | US$6.76 trillion | 14 Oct 2026 | 21.9% of 2025 GDP (US$30.86 trillion) |
| Eurosystem (ECB and national central banks) | €5.90 trillion | 18 Sep 2026 | 37.2% of 2025 euro-area GDP (€15.88 trillion) |
The ratios use different dates and are only approximate, but the contrast is clear:
- The structure differs more than the size. The Fed and the Eurosystem grew mostly by buying domestic bonds through quantitative easing after 2008 and in 2020. The RBI grew mostly by buying foreign assets: about 71% of its assets are foreign.
- The Fed and ECB are shrinking or flat after QE, while the RBI's balance sheet grew 20.6% in 2025-26 through OMO purchases and revaluation.
- Revaluation risk is larger for the RBI. A 10% move in the rupee changes the rupee value of over ₹63 lakh crore of foreign assets and gold, which is why the CGRA and the ECF matter so much.
Common exam traps
- "The RBI's accounting year is July–June." No longer. It has been April–March since 2020-21, and that year ran for nine months.
- "SDF balances are assets of the RBI." No. SDF and reverse repo are deposits (liabilities); repo and MSF are loans and advances (assets).
- "The RBI's capital is large." It is ₹5 crore, unchanged since 1935. The real buffers are the Contingency Fund and the CGRA.
- "The CGRA is part of the CRB." No. The CRB is realised equity (capital, Reserve Fund, CF, ADF). Revaluation balances are separate and cover market risk only.
- "The Jalan range was 4.5–7.5%." No. Jalan (2019) set 5.5–6.5%; the 2025 revision set 4.5–7.5%.
- "The balance sheet grew 20.6% because the RBI bought lots of gold." No. Gold rose only 0.94 tonnes; its value rose because of price and the weaker rupee.
- "Exchange gains of ₹1.69 lakh crore are unrealised." No. Booked income is realised gain on dollar sales; unrealised gains go to the CGRA.
Key facts at a glance
| Accounting year | April–March since 2020-21 (that year was nine months, July 2020–March 2021) |
| Balance sheet, 31 Mar 2026 | ₹91,97,121.08 crore, up 20.6% |
| Balance sheet, 31 Mar 2025 | ₹76,25,421.93 crore |
| Share of GDP | About 26.6% of 2025-26 nominal GDP (₹346.36 lakh crore) |
| Largest liability | Notes issued, ₹41,24,766.88 crore (44.8%) |
| Largest asset | Foreign currency assets, ₹52,68,234.26 crore (57.3%) |
| Foreign vs domestic assets | 70.9% vs 29.1% |
| Gold | 880.52 tonnes; ₹10,94,309.49 crore (11.9% of assets) |
| CGRA | ₹21,68,530.23 crore |
| Contingency Fund | ₹5,68,333.19 crore |
| Capital / Reserve Fund | ₹5 crore / ₹6,500 crore |
| Income / expenditure 2025-26 | ₹4,27,684.15 crore / ₹1,41,091.69 crore |
| Provision to CF 2025-26 | ₹1,09,379.64 crore |
| Surplus to government 2025-26 | ₹2,86,588.46 crore (Section 47) |
| ECF (Jalan, 26 Aug 2019) | CRB 5.5–6.5% of balance sheet |
| ECF (revised, 15 May 2025) | CRB 4.5–7.5%; MFS buffer 3.5–6.5% |
| CRB chosen for 2025-26 | 6.5% |
| Legal anchors | Sections 23 (Issue Dept), 33 (backing for notes), 46 (Reserve Fund), 47 (surplus), 48 (no income tax), 53 (weekly and annual accounts) |
Exam corner: what to remember
- Balance sheet on 31 March 2026: ₹91.97 lakh crore, up 20.6%; about 26.6% of GDP.
- Notes issued (about 45%) are the largest liability; foreign currency assets (about 57%) are the largest asset.
- Gold: 880.52 tonnes; its value rose 63.8% on price and the rupee, not on purchases.
- Domestic investments up 44.9%, thanks to OMO purchases.
- SDF and reverse repo = deposits; repo and MSF = loans and advances.
- CGRA holds unrealised currency and gold gains. IRA-FS and IRA-RS hold mark-to-market on bonds. Year-end debit balances are charged to the CF.
- Jalan ECF (2019): CRB 5.5–6.5%, ₹1,76,051 crore transferred. Revised ECF (May 2025): CRB 4.5–7.5%. CRB 7.5% for 2024-25, 6.5% for 2025-26.
- Income 2025-26 ₹4.28 lakh crore; surplus ₹2,86,588.46 crore, a record.
- Accounting year April–March from 2020-21 (nine-month transition year).
- Capital still ₹5 crore; nationalised 1 January 1949.
Test yourself
What was the size of the RBI's balance sheet on 31 March 2026?
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Answer: (d) It was ₹91,97,121.08 crore, up 20.6% from ₹76,25,421.93 crore a year earlier.
Which is the largest liability on the RBI's balance sheet?
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Answer: (b) Notes issued were ₹41.25 lakh crore, about 45% of total liabilities.
Where does the RBI record money that banks park in the Standing Deposit Facility?
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Answer: (c) Under the RBI's accounting policy, reverse repo and SDF are deposits; repo and MSF are loans and advances.
The RBI's accounting year was changed to April–March from:
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Answer: (c) 2020-21 was a nine-month transition year, from July 2020 to March 2021.
Under the revised Economic Capital Framework approved in May 2025, the Contingent Risk Buffer can range from:
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Answer: (b) The CRB is now 6.0% ± 1.5% of the balance sheet. 5.5–6.5% was the Jalan range, and 3.5–6.5% is the monetary and financial stability component.
In May 2026 the RBI's Central Board kept the Contingent Risk Buffer for 2025-26 at:
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Answer: (c) The CRB was 6.5%, down from 7.5% for 2024-25, with a provision of ₹1,09,379.64 crore.
The RBI's available realised equity on 31 March 2026 was ₹5,97,812.87 crore and the balance sheet was ₹91,97,121.08 crore. Had the Board kept the CRB at 7.5% instead, roughly how much more would it have had to provide?
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Answer: (c) 7.5% − 6.5% = 1% of ₹91,97,121 crore ≈ ₹91,971 crore.
The RBI buys US$3 billion from banks at ₹95 a dollar and does not sterilise it. What happens to bank reserves (deposits with the RBI)?
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Answer: (b) 3 billion × ₹95 = ₹28,500 crore; FCA and bank deposits both rise by that amount.
The RBI's gold holdings were 880.52 tonnes on 31 March 2026. Why did their value rise 63.8% in 2025-26?
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Answer: (b) Holdings rose only 0.94 tonnes; the rise in value came from the gold price and the rupee.
In the 2019 Jalan framework, at what level did the Central Board set realised equity, releasing ₹52,637 crore of excess provisions?
Show answer
Answer: (a) Realised equity was set at the lower bound of 5.5% (it had been 6.8%), and ₹52,637 crore was transferred with the 2018-19 surplus, for a total of ₹1,76,051 crore.
Further reading
- RBI Annual Report 2025-26, Chapter XII: The Reserve Bank's Accounts for 2025-26: the balance sheet, income statement, schedules and notes in full. The single best source for this topic.
- Report of the Expert Committee to Review the Extant Economic Capital Framework (Bimal Jalan) and Board decision, 26 August 2019: the RBI's summary of the Jalan recommendations and the ₹1,76,051 crore transfer.
- Highlights of the Revised Economic Capital Framework, 23 May 2025: what changed in 2025, in the RBI's own words.
- RBI Annual Report 2020-21, Chapter XII: the nine-month transition year and the switch to an April–March accounting year.
- RBI Annual Report 2021-22, Chapter XII: includes a box on how the balance sheet is presented since the Malegam committee's reforms.
- Reserve Bank of India Act, 1934: Sections 23, 33, 46, 47, 48 and 53, which set the shape of the balance sheet.
- Federal Reserve H.4.1 release, 15 October 2026: the Fed's weekly balance sheet, useful for comparing structures.
Sources
- RBI Annual Report 2025-26, Chapter XII: balance sheet and income statement for 2025-26 and 2024-25; all schedules; growth of 20.6%; domestic/foreign asset shares; gold of 880.52 tonnes and its location; FCA rupee and dollar values; CGRA, IRA-FS, IRA-RS and FCVA balances; ARE table; CRB range of 4.5–7.5% and CRB at 6.5%; income, expenditure and surplus trends; accounting treatment of LAF, MSF and SDF; footnote on the ECF adopted in August 2019 and revised in May 2025 (accessed 24 October 2026)
- RBI press release, 22 May 2026: 623rd meeting of the Central Board: surplus of ₹2,86,588.46 crore; balance sheet up 20.61% to ₹91,97,121.08 crore; CRB at 6.5%; provision of ₹1,09,379.64 crore; net income before provisions ₹3,95,972.10 crore (accessed 24 October 2026)
- RBI press release, 23 May 2025: 616th meeting of the Central Board: surplus of ₹2,68,590.07 crore for 2024-25; CRB history of 5.5%, 6.0%, 6.5% and 7.5% (accessed 24 October 2026)
- RBI press release, 23 May 2025: Highlights of the Revised Economic Capital Framework: approval on 15 May 2025; CRB 6.0% ± 1.5%; MFS buffer 5.0% ± 1.5%; ES 99.5–97.5%; surplus distribution rules (accessed 24 October 2026)
- RBI press release, 26 August 2019: Jalan committee recommendations; realised equity of 6.5–5.5%; economic capital of 24.5–20%; ₹1,76,051 crore transfer; 578th Board meeting (accessed 24 October 2026)
- RBI Annual Report 2020-21, Chapter XII: change of accounting year to April–March; nine-month 2020-21; balance sheet of ₹57,07,669.13 crore on 31 March 2021 (accessed 24 October 2026)
- RBI Annual Report 2021-22, Chapter XII: Malegam committee and the single balance sheet from 2014-15 (accessed 24 October 2026)
- RBI Annual Report 2022-23, Chapter XII and Annual Report 2023-24, Chapter XII: balance sheet sizes on 31 March 2022, 2023 and 2024 (accessed 24 October 2026)
- Reserve Bank of India Act, 1934: Sections 23, 33(2), 46, 47, 48 and 53 (accessed 24 October 2026)
- PIB/MoSPI, Provisional Estimates of Annual GDP for 2025-26, 5 June 2026: nominal GDP of ₹346.36 lakh crore in 2025-26 and ₹318.07 lakh crore in 2024-25 (accessed 24 October 2026)
- Federal Reserve, H.4.1, 15 October 2026: total assets of US$6,755,639 million on 14 October 2026 (accessed 24 October 2026)
- FRED, US GDP (GDPA): US nominal GDP of US$30,861.3 billion in 2025, from BEA (accessed 24 October 2026)
- ECB, Weekly consolidated financial statement of the Eurosystem as at 18 September 2026 (via Banca d'Italia): total assets of €5,898,477 million (accessed 24 October 2026)
- Eurostat, nama_10_gdp: euro-area (EA20) GDP at current prices of €15,876,783.6 million in 2025 (accessed 24 October 2026)
- RBI, Governor's Statement, 7 October 2026: ₹1.0 lakh crore of OMO sales since the August policy (accessed 24 October 2026)
- RBI press release, 5 December 2025: OMO purchases of ₹1,00,000 crore and a US$5 billion buy/sell swap (accessed 24 October 2026)
- News On AIR, 24 December 2025: ₹2 lakh crore OMO purchases in four tranches and a US$10 billion swap on 13 January 2026 (accessed 24 October 2026)
- Outlook Money (PTI), 18 February 2026: OMO purchases of ₹6,39,203 crore in 2025-26 to 13 February, about 47% of gross issuance (accessed 24 October 2026)
- Devdiscourse (ANI), 16 October 2026: forex reserves of US$726.03 billion in the week to 9 October 2026 and their components (accessed 24 October 2026)