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‘RBI surplus transfer will be as per panel norms’

Union Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman  

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Policy as per Section 47 of RBI Act.

Finance Minister Nirmala Sitharaman on Monday said transfer of surplus reserves from the Reserve Bank of India (RBI) to the government in future would depend on net income and other financial parameters of the central bank besides the recommendations of the expert committee on excess capital.

The surplus distribution policy of the RBI is determined in accordance with Section 47 of the RBI Act, 1934, Ms. Sitharaman said in a written reply to the Lok Sabha.

“The quantum of surplus transfer to the government in the coming years would depend on RBI’s net income, ‘required realised equity’ as a per cent of RBI’s balance sheet and ‘available realised equity’ as a per cent of RBI’s balance sheet in the coming years, and shall be governed by the legal provisions of the RBI Act, 1934 read with the recommendations of the committee as accepted by RBI,” Ms. Sitharaman said.

The Minister was replying to a question asked by Gopal Chinnaya Shetty if the issue of surplus reserves of RBI was resolved as per the suggestions of the Jalan committee and whether in future the government was likely to get additional dividend from RBI as per the recommendations of the said committee.

The Bimal Jalan expert committee had submitted its report to the Reserve Bank of India on August 14, 2019.

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Printable version | Dec 16, 2019 11:10:24 AM | https://www.thehindu.com/business/rbi-surplus-transfer-will-be-as-per-panel-norms/article30009645.ece

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