BUSINESS

RBI to transfer Rs. 28,000 crore interim surplus to government

The board of Reserve Bank of India on Monday decided to transfer an interim surplus (dividend) of Rs. 28,000 crore to the government, the central bank said.

This is second consecutive year that the central bank has transferred interim surplus to the government.

Inclusive of the Rs. 40,000 crore transferred by the central bank as final dividend for 2017-18, the Centre has earned a total of Rs. 68,000 crore as dividend from the RBI for the 2018-19 fiscal. The accounting year of the RBI runs from July to June.

Limited audit review

“Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of Rs. 280 billion to the Central government for the half-year ended December 31, 2018. This is the second successive year that the Reserve Bank will be transferring an interim surplus,” the RBI said in a statement.

Sources indicate the system of audit of balance sheet twice a year would be continued for the coming years also in order to decide on the interim surplus. Last year, RBI had transferred Rs. 10,000 crore as interim surplus. The government had been putting pressure on the central bank to transfer more funds from the contingency reserves. A panel, headed by former RBI Governor Bimal Jalan, had been formed to review the economic capital framework of the bank.