UPSC CSE Prelims 2025
Buying and selling Government bonds: The Reserve Bank of India (RBI) earns income through Open Market Operations (OMOs) involving government securities. This includes interest earned on these bonds and potential capital gains from their sale.
Buying and selling foreign currency: The RBI generates revenue from its foreign exchange operations, which involve buying and selling foreign currencies to manage exchange rates and foreign reserves. Profits arise from favourable price movements in these transactions.
Printing and distributing currency notes: This activity generates seigniorage, which is the profit derived from the difference between the face value of currency notes and coins and their cost of production and distribution.
Pension fund management: The management of pension funds in India is primarily undertaken by specialized bodies such as the Employees' Provident Fund Organisation (EPFO) and the Pension Fund Regulatory and Development Authority (PFRDA), not the Reserve Bank of India.
Lending to private companies: The Reserve Bank of India functions as a banker to commercial banks and certain financial institutions, providing liquidity and acting as a lender of last resort. It does not directly lend to private companies.