RBI board approves transfer of higher surplus to government

The Reserve Bank of India’s Central Board on Friday approved the transfer of ₹99,122 crore as surplus to the Central Government for the accounting period of nine months ended March 31, 2021 (July 2020-March 2021). This is 73.50 per cent higher vis-a-vis the ₹57,128 crore transfer approved in the accounting year 2019-20.

This transfer of higher surplus in the nine months ended March 31, 2021 comes in the backdrop of the government stepping up spending for healthcare and social sector schemes in the wake of the Covid-19 pandemic.

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The Board, at its 589th meeting on Friday, decided to maintain the Contingency Risk Buffer at 5.50 per cent.

The Board reviewed the current economic situation, global and domestic challenges and recent policy measures taken by the RBI to mitigate the adverse impact of the second wave of Covid-19 on the economy, RBI said in a statement.

With the change in the RBI’s accounting year to April-March (earlier July-June), the Board discussed the working of the RBI 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.

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