RBI expects contingency reserve to be at 12%
Mumbai: The Reserve Bank of India (RBI) expects the contingency reserve (CR) to account for 12 per cent of its total assets by the year 2005. This reserve enables it to absorb unexpected and unforeseen contingencies. The balance in the CR has gone up from Rs 48,434.17 crore as on 30 June 2002 to Rs 55,249.29 crore as on 30 June 2003. RBI's asset development reserve (ADR), which is meant for meeting internal capital expenditure and for making investments in its subsidiaries and associate institutions, was up by Rs 62.40 crore at Rs 890.31 crore (Rs 827.91 crore).

The CR and ADR together constituted 11.7 per cent of the total assets of the RBI as on June-end 2003. The transfer to the contingency reserve in 2002-03 was less by Rs 262.12 crore at Rs 6,733.92 crore (Rs 6,996.04 crore in the previous year). A sum of Rs 81.20 crore, representing unresolved items of credit, which was included under other liabilities - miscellaneous head, was credited to the CR during the reporting year.
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Falling rates affect RBI's gross income
Mumbai: Downward movement in the domestic as well as international interest rates has affected Reserve Bank of India's gross income. RBI's gross income declined by 6.1 per cent (Rs 1,504.70 crore) to Rs 23,185.64 crore in the year ended 2002-03 (July-June) as against Rs 24,690.34 crore in the previous year. The drop in income from domestic sources was due to fall in domestic assets and lower interest rates, the RBI said in its latest annual report. Income from domestic resources came down by 9.14 per cent (Rs 1,344.89 crore) to Rs 13,358.99 crore in the reporting year as against Rs 14,703.88 crore in the corresponding period last year.

Similarly, income from foreign sources was down by 1.6 per cent (Rs 159.81 crore) to Rs 9,826.65 crore in the July 2003 to June 2003 period as against Rs 9,986.46 crore in the year-ago period. In the reporting year the surplus transfer to the government from the total income was lower by Rs 1,486 crore at Rs 8,834 crore as against Rs 10,320 crore in the previous year. The transfer to the contingency reserve was less by Rs 262.12 crore at Rs 6,733.92 crore (Rs 6,996.04 crore in the previous year) and that to the asset development reserve was up by Rs 62.40 crore at Rs 890.31 crore (Rs 827.91 crore).
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