The Reserve Bank of India (RBI) is unlikely to give in to the government’s demand of transferring funds that was set aside for contingency reserves in 2016-17 and 2017-18, according to sources.
A total of ₹27,330 crore — ₹13,140 crore in FY17 and ₹14,190 crore in FY18 — was set aside by the RBI for the contingency fund.
The sources said there was no precedence of such a dividend being paid, that is, from funds that have already been set aside for contingencies. Finance Minister Piyush Goyal, in a written response to the Rajya Sabha, had said: “The government has requested the RBI for providing an interim surplus for the financial year 2018-19 on the analogy of previous financial year and transfer of the amount withheld from the surplus of 2016-17 and 2017-18.”
Statutory audit
At the same time, the RBI has now decided to conduct statutory audit of its account twice a year, so that it can transfer the surplus to the government as many times. The government has been demanding more funds as dividend from the RBI which has become a bone of contention.
A six-member committee headed by former RBI Governor Bimal Jalan has been formed to review the economic capital framework of the central bank. The committee would submit its report within 90 days from the date of its first meeting.
