RBI Annual Report 2024-25

Current Context: The Reserve Bank of India (RBI) has already released its Annual Report for the fiscal year 2024-25. It was published around May 29-30, 2025, as is customary for the RBI.

Key Points:

• Economy: GDP growth at 7.0% (2024-25), projected 6.5% (2025-26). Inflation below 4% in early 2025, but food inflation risks persist. External debt-to-GDP at 19.1%, lowest among emerging markets.
• RBI Financials: Balance sheet up 8.2% to ₹76.25 lakh crore. Income rose 22.7% to ₹3.38 lakh crore, enabling a ₹2.69 lakh crore surplus transfer to the government.
• Monetary Policy: Focused on price stability and growth, with liquidity support for productive sectors.
• The Reserve Bank of India (RBI) reported a 59% increase in currency printing costs over the last five years.
• Currency: Circulation grew 6% to ₹36.87 lakh crore. ₹500 notes dominate. ₹2, ₹5, and ₹2,000 note printing stopped; 98.2% of ₹2,000 notes returned. Project Sa-Mudra digitizes currency management. Counterfeit detections down to 217,396.
• Digital Payments: UPI transactions hit 13 billion (March 2024). CBDC retail circulation at ₹1,016 crore with expanded pilots. Non-cash payments dominate (99.8%).
• Banking: Banks’ profitability up, NPAs at 2.5% (13-year low), CRAR at 16.8%. Frauds surged to ₹21,367 crore. Unclaimed deposits rose to ₹78,213 crore.
• Future Plans: FinTech data repository, CBDC expansion, sustainability initiatives (e.g., recycling notes), and enhanced bank liquidity tests.
• Risks: High public debt, asset valuation concerns, and potential global financial spillovers.

Question:

Q.1 What was the Capital to Risk-Weighted Assets Ratio (CRAR) of banks as reported by the RBI for FY 2024–25?
a) 15.0%
b) 16.8%
c) 17.5%
d) 18.0%

Answer: b) The CRAR of banks stood at 16.8% in FY 2024–25, reflecting a strong capital position in the banking sector.