Daily Current Affairs

RBI To Transfer Rs 99,122-Crore Surplus To Government

Current GK (SBI-PO) Indian Economy

The Reserve Bank of India will transfer a surplus of Rs 99,122 crore to the government for the nine months ended March 31, 2021.
The RBI is transitioning to an April-March accounting year from FY22.
The surplus was decided on while holding the contingency risk buffer at 5.5%.
The surplus transfer is the highest since 2018-19, when the central bank had transferred Rs 1.75 lakh crore, which included a one-time payout on account of a change in the RBI’s Economic Capital Framework. Under the new framework, the RBI is required to maintain a contingency risk buffer of 5.5-6.5% of its balance sheet. The central bank has chosen to maintain the lowest required buffer.
In FY21, the RBI would have earned income from a larger amount of open market operations. It would have also seen some benefit from a change in accounting treatment on sales of forex assets. Under the new rules, these sales get benchmarked to the weighted average cost of the reserves, which allows for a slightly higher profit to be realised.