Rs 99,122 Crore Surplus Will Be Transfered To The Government, Says RBIIn an official statement, the Reserve Bank of India (RBI) has announced that it will transfer a surplus of Rs 99,122 crore from the accounting period which ended on March 31, 2021 to the government. The central bank also decided to maintain the contingency risk buffer at 5.5%.
The decisions were taken at the recently concluded 589th meeting of the Central Board of Directors of RBI convened under the leadership of Governor Shaktikanta Das.
The board discussed the change from the old July-June accounting year to the new April-May cycle and the progress made during the transitional nine months (July 2020-March 2021). “The Board also approved the transfer of Rs 99,122 crore as surplus to the Central Government for the accounting period of nine months ended March 31, 2021 (July 2020-March 2021),” the official statement read.
The step taken by the RBI is in accordance with Section 47 of the RBI Act which says that after accounting for bad/doubtful debts, depreciation, contribution to staff and superannuation funds, the balance of the profits shall be paid to the Central Government.
As the country reels under the effects of the second wave of COVID-19, the transfer of surplus finance will be much appreciated by the Centre as it plans to restructure its finances.
The board also dicussed the various measures implemented by the RBI to tackle the lacklustre state of the pandemic-hit economy and reviewed the prevailing domestic as well as the global economic situation.
Given its unique position as a banker to the government, the RBI is expected to manage its finances and pay dividends from the surplus and profits whenever applicable. Last year, the RBI transfered Rs 57,128 crore (44%) of its surplus to the government – the lowest in seven years. In comparison, it transfered Rs 1,23,414 crore in 2019.