RBI Annual Report 2022-23: Real GDP growth for 2024 to be 6.5%

MUMBAI, Maharashtra: A recently released report of the Reserve Bank of India (RBI) for 2022-23 highlights that as of March 31, 2023, banknotes of ₹500 and ₹2,000 accounted for nearly 87.9 per cent of the total value of the banknotes.

Banknote of ₹500 has the highest share in the total banknotes present in the market of India, followed by ₹10 notes with a share of 19.2 per cent. Circulation of coins in the Indian market increased by 8.1 per cent in the financial year 2022-23, and the total value has increased by 2.6 per cent. Coins of value of ₹1, ₹2 and ₹5 together dominate the money market with a 72.3 per cent share, and in terms of value, these coins account for 83.1 per cent of total coins in circulation.

Apart from the legal tender money, share of fake notes has also increased in the financial year 2022-23, during which 91,110 fake ₹500 notes were detected, a massive 14 per cent increase as compared to the financial year 2021-22. 79,669 pieces of ₹500 notes 78,699 pieces of ₹100 notes, 27,258 pieces of ₹200 notes and 9,806 pieces of fake ₹2,000 notes were detected in 2021-22.

Reports also highlighted that 4.6 per cent of the total Fake Indian Currency Notes (FICNs) in the banking system was detected by the reserve bank, while the remaining 95.4 per cent by other banks in the market.

Earlier on May 19, the central bank decided to withdraw ₹2,000 notes from the money market, circulation of which declined by a massive 27.9 per cent as compared to last financial year.

RBI projects the real GDP growth for FY2024 at 6.5 per cent. The central bank has acknowledged that the domestic economy could encounter challenges in the current financial year due to a global economic slowdown. But thanks to the strong macroeconomic factors, financial conditions and dividends from the past reforms, the country will be in a financially advantageous position.

Higher private sector investment is expected by the central bank considering the sustained increase in capital expenditure over the recent years. The central bank said, in the Union Budget 2023-24, budgetary capital expenditure has increased by 37.4 per cent, with the railways receiving the highest ever capital outlay of ₹2.4 lakh crore. The allocation of interest-free loans to states for capital expenditure has also been enhanced to ₹1.3 lakh crore from ₹1.0 lakh crore in the previous year.”

Apart from the capital expenditure, another thing which has increased in 2022-23, is banking sector fraud which increased upto 13,350. Although the number of fraud cases has increased, the amount of bank fraud has come down to ₹30.252 crores, recording a massive 55 per cent decline in the amount involved in fraud.

Most of the frauds were reported in the digital payments sector, including card and internet, but in terms of value, the loan portfolio has been far ahead of others. 

Public sector banks reported 3,405 cases of fraud involving ₹21,125 crore, while the private bank reported 8,932 cases amounting to ₹8,727 crore. Remaining fraud cases were detected by foreign banks, financial institutions, small finance banks, and payment banks.