RBI balance sheet expands 30% to Rs 533 trn on growth in forex reserves

Central bank's balance sheet saw a larger-than-normal size due to policy actions and liquidity infusion measures adopted to mitigate shock of Covid-19 outbreak

The Reserve Bank of India’s (RBI’s) balance sheet expanded by 30.02 per cent to Rs 533.47 trillion in FY20, thanks to growth in foreign exchange reserves.

RBI’s balance sheet saw larger than normal size due to policy actions and liquidity infusion measures adopted to mitigate the adverse shock induced by Covid-19.

As of June 30, 2019 (FY19), the size of the balance sheet was Rs 410.29 trillion. The RBI’s follows a July-June accounting year. However, the current year (FY21) will end in March 2021 to mark its transition to an April-March calendar (FY22 onwards).

Gross total income for FY20 amounted