The Reserve Bank of India has decided to transfer a surplus of Rs 99,122 crore to the central government, it said.
The decision was taken at the 589th meeting of the Central Board of Directors of RBI on May 21, 2021.
"With the change in the RBI's accounting year to April-March (earlier July-June), the Board discussed the working of the RBI during the transition period of nine months (July 2020-March 2021) and approved the Annual Report and Accounts of the Reserve Bank for the transition period. 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," RBI said.
Last year, RBI transferred only 44% of its surplus to the central government, at Rs 57,128 crore. This was also the lowest surplus transfer in the past seven years before last year.
In 2019, RBI transferred Rs 1,23,414 crore surplus to the central government.
As the manages of Government finances, every year, the RBI pays a dividend to Government to help with the Government's finances from its surplus profit. The RBI was founded in 1934 and has been operating according to the RBI act of 1934. Chapter4, Section 47 of the Act, titled "Allocation of Surplus funds" mandates any profit made by the RBI from its operations to be sent to the Centre.
Under Section 47 of the RBI Act," after making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds 2 are usually provided for by bankers, the balance of the profits shall be paid to the Central Government."
0 Comments