RBI transfers huge amount to Central Government
The Reserve Bank of India’s board gave approval to the decision of transferring Rs 87,416 crore as surplus to the Central government. Central Bank had make up its mind to raise the contingency risk buffer to 6% from 5.5%.
The review has been done by the Board in its meeting about the global and domestic economic situation and associated challenges including the impact of current global geopolitical developments.
In FY22, the RBI transferred Rs 30,307 crore to the government.
Discussion in board meeting of RBI:
The board led by the Shaktikanta Das discussed the working of the Reserve Bank for the period of the year April 2022 to March 2023. After the discussion they have approved the Annual Report and accounts of the Reserve Bank for the accounting year 2022-23.
India’s benchmark 10-year bond yield had priced even though it has jumped 5 basis points to 7.01% in a surplus transfer of rupees one to one and half lakh crore rupees.
The government targeted to earn Rs 40,953 crore from RBI and public sector financial institutions in the previous financial year but it was much lower compared to the budget estimate of Rs 73,948 crore for FY23.
Even dividends from public sector enterprises and other investments have been estimated at Rs 43,000 crore in the Budget document for FY24 as well.
As per the Revised Estimate for FY23, the dividend from public sector enterprises and other investments was higher at Rs 43,000 crore from the Budget Estimate of Rs 40,000 crore.
Question & Answer:
Q1. Why RBI transfers surplus amount to the central government?
Ans. To help partially offset possible revenue losses due to lower tax revenues and divestment
Q2. How much amount has been transferred by RBI to the central government recently?
Ans. Rs 87,416 crore
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