The Reserve Bank of India on May 21, 2021, decided to transfer a surplus of Rs. 99,122 crores to the Central Government.
The decision of approving the transfer was taken at the 589th meeting of the RBI’s Central Board of Directors.
According to the official statement, with the change in RBI’s accounting year to April to March (earlier July to June), the board of directors discussed the working of the apex bank during the transition period of nine months (July 2020 to March 2021).
The board approved the annual report and accounts of the Reserve Bank for the transition period.
Transfer of Rs. 99,122 crores to Center:
• The official statement by RBI informed that during the RBI’s Central Board of Directors meeting, the transfer of Rs. 99,122 crores as the surplus to the Central Government was approved for the accounting period of nine months ended March 31, 2021 (July 2020 to March 2021).
• The Reserve Bank of India, as the manager of the government finances, pays a dividend every year from its surplus profit. In 2020, the bank had transferred 44% of its surplus to the Union Government at Rs. 57, 128 crores.
Board of Directors review policy measures by RBI:
The Central Board of Directors in the meeting reviewed the ongoing economic situation, global and domestic challenges as well as the recent policy measures taken by the Reserve Bank of India to mitigate the adverse impact of the second wave of Coronavirus pandemic on the economy.
Deputy Governors Michael Debabrata Patra, Mahesh Kumar Jain, T Rabi Sankar, M Rajeshwar Rao, and other directors Satish K. Marathe, N Chandrasekaran, Revathy Iyer, S Gurumurthy, and Sachin Chaturvedi attended the meeting.
Secretary at the Department of Financial Services, Debasish Panda, and Secretary at the Department of Economic Affairs, Ajay Seth, were also present in the meeting.