RBI income up but expenditure rises more sharply: Annual Report

MUMBAI: The Reserve Bank of India (RBI)'s total income increased 2% in the year ended June 2016 to Rs 80,870 crore from Rs 79,256 crore in the previous year. However a sharper rise in the expenditure meant that the net disposable income for the central bank dropped marginally. 

In its annual report published on Monday, RBI said expenditure increased 12% to Rs 14,990 crore from Rs 13,356 crore "primarily due to provisions made for reimbursing service tax on agency commission paid to agency banks." RBI follows the July to June financial year. 

RBI being the banker to the government pays a commission to banks for different financial services offered for the government. In the year ended June 2016 besides the commissions paid, the central bank also had to pay service tax on such commissions, inflating expenses further. 

As a result the surplus transferred to the government dipped marginally by 0.03% to Rs 65,876 crore in the year ended June 2016 from Rs 65,896 crore in the year ended June 2015.