RBI to transfer Rs99,122 crore surplus to govt
21 May 2021
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The Central Board of Directors of Reserve Bank of India at its annual meeting today approved the transfer of Rs99,122 crore as surplus to the central government for the accounting period of nine months ended 31 March 2021 (July 2020-March 2021).
The transfer will help the government's finances as the country battles a furious second coronavirus wave that has seen daily infections and deaths rise to a record level. The restrictions clamped to break the chain of infections have also put a question mark on the country's economic recovery.
RBI has decided to maintain its Contingency Risk Buffer at 5.50 per cent. The central bank is required to maintain a contingency risk buffer of 5.5-6.5 per cent of its balance sheet.
“After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds 2 [and for all other matters for which provision is to be made by or under this Act or which] are usually provided for by bankers, the balance of the profits shall be paid to the Central Government,” as per Section 47 of the RBI Act.
The 589th meeting of the Central Board of Directors of Reserve Bank of India also marks the change in the Reserve Bank’s accounting year to April-March from July-June earlier.
The board discussed the working of the Reserve Bank 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 at its meeting reviewed the current economic situation, global and domestic challenges and recent policy measures taken by the Reserve Bank to mitigate the adverse impact of the second wave of Coronavirus pandemic on the economy.
Deputy Governors Mahesh Kumar Jain, Michael Debabrata Patra, M Rajeshwar Rao, T Rabi Sankar and other directors of the Central Board, viz, N Chandrasekaran, Satish K Marathe, S Gurumurthy, Revathy Iyer and Sachin Chaturvedi attended the meeting. Debasish Panda, secretary, Department of Financial Services and Ajay Seth, secretary, Department of Economic Affairs, also attended the meeting.
