Summary Of RBI Annual Report for 2023-24

Part One: The Economy - Review and Prospects

1. Global Economy:
o Global economy shows resilience but faces challenges like high inflation, tight
monetary conditions, geopolitical tensions, and financial stability risks.
o Global growth is expected to weaken to 3.2% in 2023 from 3.5% in 2022 and
further to 2.7% in 2024.
2. Inflation:
o Inflation is easing but remains above target in major economies.
o Emerging Market Economies (EMEs) have started rate-cutting cycles, while
major Advanced Economies (AEs) are shifting away from negative policy rates.
3. Indian Economy:
o India shows strength and stability, emerging as the fastest-growing major
economy.
o GDP growth for 2023-24 is estimated at 7%.
o Inflationary pressures are reducing, though food inflation remains vulnerable.
o Fiscal deficit is projected to be 6.4% of GDP for 2023-24, showing fiscal
consolidation.
o Current account deficit narrowed to 2.5% of GDP.
4. 2023-24 Experience:
o Global growth decelerated to 3.2% from 3.5% in 2022.
o Indian exports grew by 6.5%, and imports grew by 8.7%.
5. 2024-25 Prospects:
o The outlook for India in 2024-25 is positive with robust GDP growth, strong
investment demand, and solid financial sector performance.
o Growth projection for 2024-25 is around 7.5%.
Part Two: The Working and Operations of the Reserve Bank of India
1. Monetary Policy Operations:
o The RBI's monetary policy aims to balance growth and inflation, with a focus
on ensuring banking services reach all sections of society and strengthening
credit delivery.
 o The policy repo rate was adjusted to manage inflation and support economic
growth.
2. Credit Delivery and Financial Inclusion:
o The RBI is working towards financial inclusion, including a review of priority
sector lending guidelines and formulating a new National Strategy for
Financial Inclusion for 2025-30.
o Priority sector lending targets were revised to promote credit flow to
underserved sectors.
3. Customer Protection:
o Focus on using AI in the complaint management system to improve
consistency and ease of lodging complaints.
o The number of complaints received increased by 25% from the previous year.
4. 90th Anniversary:
o RBI celebrated its 90th anniversary, emphasizing its role in developing a
robust financial system and adopting global best practices.
o The RBI conducted various events and publications to mark the occasion.
Economic Review
1. General Government Finances:
o Improvement in key deficit and debt indicators, with a focus on growth-
supportive public expenditure and buoyant tax revenues.
o Gross tax revenue increased by 12.2%, while the fiscal deficit was contained
at 6.4% of GDP.
2. Financial Markets:
o Domestic financial markets remained stable, with strong performance in
equity markets and the Indian rupee showing stability.
o Foreign exchange reserves stood at USD 600 billion as of March 2024.
3. Real Economy:
o Indian economy exhibited resilience with sustained GDP growth of 7% and
above, supported by robust fixed investment and strong manufacturing and
services sectors.
o Industrial production grew by 5.6%, and services sector grew by 9%.
Additional Key Data
• Currency Management:
o The total value of banknotes in circulation increased by 8.2% to ₹32.5 trillion.
o The volume of coins in circulation increased by 3.5%.
• Payment and Settlement Systems:
o Digital transactions saw significant growth, with UPI transactions growing by
150% in volume and 110% in value.
o RTGS transactions increased by 15% in volume and 10% in value.
• RBI Accounts:
o The surplus transfer to the government for the year 2023-24 was ₹1.15
trillion.
o Total income of RBI increased by 10%, while expenditure increased by 5%