History and evolution of RBI’s different reserves

The question of Government demanding part of RBI Reserves was again one of the main questions in Fev-2018 policy.

However, when you look at RBI balance sheet, you see many types of reserves:

  • Reserve Fund
  • Other Reserves
    • This includes National Industrial Credit (Long Term Operations) Fund and National Housing Credit (Long Term Operations) Fund.
    • a) National Industrial Credit (Long Term Operations) Fund
    • b) National Housing Credit (Long Term Operations) Fund
  • Other Liabilities and Provisions
    • Contingency Fund
    • Asset Development Fund (ADF)
    • Currency and Gold Revaluation Account (CGRA)
    • Investment Revaluation Account (IRA) – Rupee Securities
    • Investment Revaluation Account (IRA) – Foreign Securities
    • Foreign Exchange Forward Contracts Valuation Account (FCVA)
    • Provision for Forward Contracts Valuation Account (PFCVA)

What is the origin of these reserves and what do they mean? My article in moneycontrol explains the history and evolution of these reserves.

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