The Government placed a surplus of Rs385.95bn with the Reserve Bank of India (RBI) during the week ended August 14, according to the data released by the central bank. Most of the surplus (~Rs250bn) is likely to be the profit that the RBI transferred last week to the Centre.
According to the latest RBI figures, outstanding Government surplus with the central bank rose by Rs294.99bn over the previous week. The Centre had borrowed over Rs300bn during most of April and early May to meet its revenue mismatches. It even breached its limit with the RBI for such borrowings.
Meanwhile, the latest RBI data reveals that foreign exchange reserves, including Gold and SDRs, dipped US$214mn during the week ended August 14, to US$271bn. Foreign currency assets were down US$214mn, reserves with the IMF and SDRs dipped US$1mn and US$4mn, respectively.
The value of Gold in reserves remained unchanged during the week.
Almost 40% of the reserves is believed to have comprised non-dollar assets, including the pound, yen, euro and the yuan. In such a situation, it is estimated that a sizeable portion of the rise in reserves during the week has been on account of revaluation.
Source : indiainfoline