*The Indian government has collected Rs 2.69 lakh crore from the RBI! Here’s why—* Well, that’s because the RBI is required to share its surplus earnings with the Indian government. This is because the RBI is fully owned by the government. But from where did the RBI get this money? The thing is, RBI earns money from lending to other banks, holding government bonds, and managing foreign exchange reserves. And this year RBI made huge profits from foreign investments and interest on domestic securities. Then, a large chunk of the income came from the sale and smart revaluation of foreign exchange reserves. When the value of foreign bonds or currencies went up, the RBI made gains just by holding them. These are called mark-to-market gains, kind of like your investments rising in value even if you haven’t sold them. And when it did sell some of these assets, it locked in profits. These gains, from both rising values and actual sales, added a lot of money to the RBI’s account. So does RBI have any expenses though? Well, you can find out about them in today’s newsletter - https://tinyurl.com/RBI-Annual-Report-Decoded