- The Reserve Bank of India reported a sharp increase in income from foreign exchange transactions during FY 2025-26. According to the RBI’s Annual Report, earnings from foreign exchange operations rose by nearly 52% to ₹1.69 lakh crore, compared to ₹1.11 lakh crore in FY 2024-25.
- The substantial increase reflects higher gains from the management of India’s foreign exchange reserves amid evolving global financial conditions.
Higher Income from Foreign Securities
Apart from foreign exchange gains, the RBI also recorded increased earnings from its foreign securities portfolio.
Amortisation of Premium on Foreign Securities
Income from amortisation of premium on foreign securities increased to ₹16,354.18 crore in FY26, up from ₹13,686.63 crore in the previous financial year.
Interest Income Rises
Interest earnings from foreign securities also witnessed healthy growth, rising from ₹97,006.66 crore in FY25 to ₹1.07 lakh crore in FY26.
These gains contributed significantly to the central bank’s overall profitability during the year.
RBI Balance Sheet Expands Over 20%
Balance Sheet Reaches ₹91.97 Lakh Crore
The RBI’s balance sheet expanded by 20.6%, increasing from ₹76.25 lakh crore as of March 31, 2025, to ₹91.97 lakh crore as of March 31, 2026.
Key Drivers on the Asset Side
Growth in the balance sheet was supported by:
- Domestic investments: up 44.9%
- Gold holdings: up 63.8%
- Foreign investments: up 7.9%
The sharp rise in gold holdings reflects both higher acquisitions and valuation gains during the year.
Increase in RBI Liabilities
On the liabilities side, the RBI reported growth in:
| Liability Category | Growth Rate |
|---|---|
| Revaluation Accounts | 63.4% |
| Currency Notes Issued | 11.8% |
| Deposits | 11.6% |
| Other Liabilities | 21.1% |
The significant increase in revaluation accounts was largely driven by changes in the valuation of gold and foreign currency assets.
Asset Composition of RBI
- As of March 31, 2026 Domestic assets accounted for 29.1% of total assets.
- And, Foreign currency assets, gold, overseas loans and advances accounted for 70.9% of total assets.
- This highlights the continued importance of foreign assets in the RBI’s balance sheet structure.
RBI Transfers Record Surplus to Government
Surplus Rises to ₹2.86 Lakh Crore
The RBI ended FY26 with an overall surplus of ₹2,86,588.46 crore, compared with ₹2,68,590.07 crore in FY25, registering an increase of 6.7%.
Transfer to Central Government
The RBI’s Central Board approved the transfer of the entire surplus amount of ₹2.86 lakh crore to the Central Government, marking one of the largest surplus transfers in the central bank’s history.
Key Highlights
| Indicator | FY25 | FY26 |
|---|---|---|
| Forex Transaction Income | ₹1.11 lakh crore | ₹1.69 lakh crore |
| Interest Income from Foreign Securities | ₹97,007 crore | ₹1.07 lakh crore |
| RBI Balance Sheet Size | ₹76.25 lakh crore | ₹91.97 lakh crore |
| Overall Surplus | ₹2.69 lakh crore | ₹2.86 lakh crore |
| Surplus Transfer to Government | — | ₹2.86 lakh crore |
Significance
The strong rise in foreign exchange earnings, higher returns from foreign securities, and expansion of the RBI’s balance sheet helped the central bank generate a record surplus in FY26. The large dividend transfer is expected to support government finances, fiscal management, and public expenditure plans during the current financial year.