Sources of income of RBI|UPSCPREPYQ2025#upscpyqs#upscvideos#upsc prelims economy question

The Reserve Bank of India's income is primarily generated from its functions as the nation's central bank. A significant portion comes from interest earned on its holdings of Government Securities (G-Secs), acquired through Open Market Operations (OMOs). Another major source is the return on its Foreign Currency Assets (FCA), which includes interest and capital gains from foreign government bonds. The RBI also earns interest on short-term loans provided to commercial banks (via Repo Rate) and to the government (Ways and Means Advances). The concept of seigniorage, the profit from currency issuance, is also a key income source, arising from the returns on assets backing the printed currency. Logical Elimination and Educated Guesstimate Statements III (Pension fund management) and IV (Lending to private companies) are clearly not functions of a central bank like the RBI. Eliminating options containing III or IV (B and C) leaves us with A and D. The deciding factor is statement V. While the physical act of printing costs money, the economic function of issuing currency (seigniorage) is a major source of income for the central bank. Therefore, D is the more comprehensive and correct answer. Key Points to Remember • Primary Income Sources: • Interest on Government Securities (G-Secs) and Treasury Bills. • Returns on Foreign Currency Assets (FCA). • Interest on loans to banks (Repo) and government (WMA). • Expenditure of RBI: • Printing of currency notes and coins. • Staff salaries and administrative expenses. • Commission paid to commercial banks for handling government transactions. • Profit Distribution: • After meeting its expenses and making provisions, the RBI transfers its surplus profit to the Government of India, as mandated by the RBI Act, 1934. • The quantum of this transfer is decided based on the recommendations of committees like the Bimal Jalan Committee. ✅ Important news articles & editorials Discussion from The Hindu Newspaper ✅ Practice MCQs & Mains Answer Writing from The Hindu Newspaper ✅ Editorial Analysis for UPSC from The Hindu Newspaper ✅ Summary & Notes for Revision for All Exams from The Hindu Newspaper 🔥 This video helps you in: 1. Strengthening your Daily Current Affairs foundation 2. Improving your Editorial Analysis & Note-Making Skills 3. Preparing efficiently for Prelims + Mains + Interview the hindu analysis today | the hindu newspaper today | the hindu analysis | thee hindu newspaper | the hindu | hindu analysis | Editorial Analysis | Editorial discussion | daily hindu analysis | daily analysis for hindu | the hindu editorial | today hindu analysis | the hindu news analysis | current affairs today | upsc current affairs | the hindu by veer | the hindu analysis in English | the hindu analysis for upsc | hindu editorial analysis | the hindu news analysis today | the hindu news analysis upsc | hindu analysis| today the hindu analysis | INA by Veer | Important News Analysis | INA | The Hindu Newspaper | Indian Express | PIB News | Down to Earth Magazine | Yojana magazine | CSE | IAS | CDS | NDA | UPSC APFC | UPSC EPFO | State PSC | UPPCS | UPPSC | BPSC | OPSC | MPPCS | RBI Grade B | RBI | NABARD | CLAT Exams Preparation | UPSC Prelims 2026 upsc ias syllabus | upsc syllabus | upsc online | upsc exam | upsc cse 2026 | civil preparation | upsc preparation | upsc motivation | upsc online | upsc for beginners | resources for upsc preparation | upsc online | coaching in hindi medium | newspaper reading for upsc | upsc cse 2026 result | indian express | ina analysis | the hindu newspaper | current affairs | world current affairs | current affairs world | news around world | important current affairs topics | most important current affairs | world current affairs | upsc cse current affairs | current affairs topics | important topics for upsc | ias current affairs | upsc important topics | upsc exam related topics | important news for upsc | news for upsc | upsc related current affairs | daily news analysis | the hindu for competitive exams | current affairs in hindi | daily current affair | current affairs | current affairs 2026 | current affairs today | daily current affairs booster | daily current affairs in hindi | daily current affairs news | current affairs live | today current affairs | current affairs hindi | current affairs show | January current affairs | current affairs January 2026 | current gk #upscpreparation #civilserviceexam #todaynews #newsanalysis #upscpreparation #upsc #civilserviceexam #upscpreparation #upscprelimspyq#upsc prelims solutionHii dosto aapko is video mai cricket s judi latest khabar milegi to video ko pura dekhe or like kare or share kare or channel ko subscribe kr de.