The RBI will transfer a surplus of Rs 99,122 crore to the government for the nine-month accounting period ended March 31, which will help the government’s finances as India battles a second coronavirus wave.
“With the change in the Reserve Bank’s accounting year to April-March (earlier July-June), the Board discussed the working of the Reserve Bank of India 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 ₹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.
The bank also decided to maintain the contingency risk buffer at 5.5 percent as required.
The decisions were taken at the 589th meeting of the Central Board of Directors of RBI, which was assembled to review the present economic situation, global and domestic challenges, and recent policy measures taken by RBI to reduce the impact of the second coronavirus wave on the economy.
Last year, RBI transferred Rs 57,128 crore to the government, and in 2019, it transferred Rs 1,23,414 crore surplus to the government.
Every year RBI pays a dividend to the government to help with the finances from its surplus or profit.
As the manager of its finances, every year the RBI pays a dividend to the government to help with the finances from its surplus or profit.
