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RBI’s Annual Report 2022-23: RBI’s Income Increased by 47.06%; PSBs Contribute Maximum Bank Fraud Amount

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RBI annual report Most frauds hit private lenders but PSU banks outweigh in fraud amountOn May 30, 2023, the Reserve Bank of India (RBI) released its Annual Report 2022-23, a static report of the Central Board of Directors on the working of the RBI for the year ended March 31, 2023 (i.e. FY23) submitted to the Central Government in terms of Section 53(2) of the RBI Act, 1934.

  • India has experienced macroeconomic and financial stability in FY23 with a steady growth.
  • India has contributed more than 12% on average to global growth during the last five years.

Highlights of the RBI’s Annual Report:

a.Assessment and Prospects of Domestic Economy:

i.Growth: According to the second advance estimates (SAE) of national income released by the National Statistical Office (NSO) the Indian economy is expected to have recorded a 7.0% growth in real GDP (Gross Domestic Product) in FY23 from 9.1% in FY22.

  • Agriculture and allied activities were resilient in 2022-23, with gross value added (GVA) registering a growth of 3.3%.
  •  The production of kharif oilseeds, sugarcane and cotton was higher during FY23.
  • Real GDP growth for FY24 is projected at 6.5% with risks evenly balanced.

ii.Inflation: Overall, headline inflation increased to 6.7% in 2022-23 from 5.5% in 2021-22.

  • Inflation reached a peak of 7.8 per cent in April 2022 due to sharp increase in global prices of crude oil, food, fertilisers and metals.

iii.Deficit and Debt:

i.The general government deficit and debt moderated to 9.4% and 86.5% of GDP, respectively, in FY23 from the peak levels of 13.1% and 89.4% in FY21, respectively.

ii.The gross fiscal deficit (GFD) of the government declined from 6.7% of GDP in FY22 to 6.4% of GDP in 2022-23.

iii.India’s current account deficit (CAD) was at 2.7% of GDP during April-December 2022.

b.FDIs are at their lowest since FY20

i.Foreign Direct Investment (FDI): According to the RBI annual report, the total Foreign Direct Investment (FDI) flows into India reached a three-year low of USD 46 billion in FY23, which is 26% lower than the previous fiscal year(FY22 USD 58.8 billion).

  • FDI flow into India in FY21 was USD 59.6 billion and FY20 was USD 50 billion.
  • Net capital inflows under FDI, were lower during FY23 at USD 28.0 billion than USD 38.6 billion in FY22.

ii.The surplus liquidity absorbed under the LAF (Liquidity Adjustment Facility) moderated from a daily average of Rs 6.6 lakh crore in March 2022 to Rs 0.14 lakh crore in March 2023.

iii.India emerged as the largest player in real-time transactions at the global level, with a 46% share in 2022.

Top 3 FDI Flows in India in FY23:

Source/IndustryFY23 (FDI in USD billion)
Country Wise Inflows
United States
Sector-wise Inflows
Financial Services6.8
Computer Services5.6

Note: FDI in the manufacturing sector fell 30% to $11.3 billion in 2022-23 on an annual basis.

c.NPA: Gross NPA ( Non-Performing Assets) as share of total advances has reduced from 15.5% in 2018-19 to 5.8% in the quarter ending December 2022. While public sector banks continue to have higher NPA ratios, they have seen a large reduction in their NPA ratio. 

d.Merchandise Trade:

i.India’s merchandise exports at USD 450.4 billion recorded a growth of 6.7%in FY23  as compared with 44.6% in FY22. 

ii.India’s merchandise imports at USD 714.0 billion recorded a growth of 16.5% in FY23.

iii.Petroleum, oil and lubricants (POL) imports constituted the largest item in India’s import, accounting for 29.3% of the overall imports in FY23. 

iv.Gold imports at US$ 35.0 billion declined by 24.2 per cent in 2022-23.

v.India is the largest importer of vegetable oil globally. India’s import bill on vegetable oil rose to USD 20.8 billion in 2022-23 from USD 19.0 billion in FY22.

e.DICGC’s Deposit Insurance:

i.To protect the small investors, DICGC offers deposit insurance of Rs 5 lakh (including the principal and interest amount) per depositor for each bank (within 90 days) in the event of the bank being unable to fulfil its commitment due to liquidation or cancellation of the banking licence.

  • Deposit Insurance and Credit Guarantee Corporation (DICGC), which is constituted under the DICGC Act, 1961 is wholly-owned by the RBI.

ii.The deposit insurance extended by DICGC covers all commercial banks including local area banks (LABs), payments banks (PBs), small finance banks (SFBs), regional rural banks (RRBs) and co-operative banks, that are licensed by the Reserve Bank. 

iii.As on March 31, 2023, the number of registered insured banks was about 2,027, which include 140 commercial banks (including 43 RRBs, two LABs, six PBs and 12 SFBs) and 1,887 co-operative banks [33 state cooperative banks, 352 district central cooperative banks and 1,502 urban cooperative banks (UCBs)].

iv.Key Facts:

  • The number of fully protected accounts (294.5 crore) in FY23 constituted 98.1% of the total number of accounts (300.1 crore). 
  • In terms of amount, the total insured deposits of Rs 83,89,470 crore in FY23, constituted a Rs 46.3% of assessable deposits of Rs 1,81,14,550 crore.
  • During FY23, the DICGC has sanctioned supplementary claims of 11 liquidated banks aggregating Rs105.8 crore under Section 16 (1) of the DICGC Act, 1961. 
  •  In FY23, it has also settled claims of 28 banks under ‘All Inclusive Directions (AIDs)’of the RBI aggregating Rs 646.8 crore.
  • The size of the Deposit Insurance Fund (DIF) stood at Rs1,69,263 crore (Provisional) as on March 31, 2023, yielding a reserve ratio (DIF/insured deposit) of 2.02%.

v.An insured bank is required to submit its claim within 45 days of imposition of AID after which the DICGC would get the claims verified within 30 days and pay the depositors within the next 15 days. 

f.Lending rates are back to pre-covid levels

i.Banks’ deposit and lending rates increased in FY23 along with a 2.5% points increased in the policy repo rate. 

ii.In response to increase in the policy repo rate in FY23, banks raised their external benchmark-based lending rate (EBLR). 

iii.The 1-year median marginal cost of funds-based lending rate (MCLR) of banks also increased by 1.5% points in FY23.

g.Bank’s Fraud Analysis:

i.In FY23, as per the assessment of bank group-wise fraud cases over the last three years private sector banks reported the maximum number of frauds, whereas the public sector banks continued to contribute maximum to the fraud amount.

ii.13,530 cases of bank frauds are identified in 2022-23 involving an amount of Rs 30,252 crore compared to 9,097 frauds amounting Rs 59,819 crore in 2021-22. 

  • The report highlighted that proportionately, the decline in the total amount involved in frauds continued during 2022-23, with a reduction of 49 per cent over 2021-22.

iii.Frauds on advances, which includes wilful loan defaults have decreased in the last two years from Rs 1.3 lakh crore to Rs 28,792 crore in 2022-23. Close to 70% of the amount involved in total bank frauds were in public sector banks.

iv.In terms of Numbers, frauds have occurred predominantly in the category of digital payments (card/internet).

v.In terms of  of value, frauds have been reported primarily in the loan portfolio (advances category).

h.Rise in RBI’s total income in 2022-23 by 47.06%: 

i.Balance sheet of RBI in FY23: The size of the RBI’s balance sheet increased by Rs 1,54,453.97 crore, i.e., 2.50% from Rs 61,90,302.27 crore in FY22  to Rs 63,44,756.24 crore in FY23. 

ii.RBI’s income increased by 47.06% to Rs 2.35 lakh crore, the expenditure increased by 14.05% to Rs 1.48 lakh crore.

iii.The overall surplus in FY23 of Rs 87,416.22 crore as against Rs 30,307.45 crore in FY22, resulting in an increase of 188.43%. The surplus was about Rs 99,122 crore in FY21; Rs 57,127.53 crore in FY20; and Rs 1,75,987.73 crore in FY19.

iv.The supply of notes during the year FY23 at 2,26,002 lakh pieces was 1.57% higher than that of FY22 (2,22,505 lakh pieces). The expenditure incurred on printing of banknotes decreased from Rs 4,984.80 crore in FY22 to Rs 4,682.80 crore in FY23.

RBI’s Income, Expenditure, and Surplus Statement in FY23:


(Amount in Rs crore)


(Amount in Rs crore)


(increased by 47.06%)

1,60,112.13 2,35,457.26

(increased by 14.05%)

1,29,800.68 1,48,037.04
Surplus payable to the Central Government  

(increased by 188.43%)



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About Reserve Bank of India (RBI):

Governor– Shaktikanta Das

Deputy Governors – Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar

Headquarters – Mumbai, Maharashtra

Establishment – 1st April 1935