RBI Pays ₹28,000 Cr Interim Surplus To Government

The total receipts from the RBI as surplus transfer to Government in 2018-19 to ₹68,000 crore. Reserve Bank of India had earlier paid ₹40,000 crore to the government as its final share of surplus for 2017-18. The RBI follows July-June accounting year.

“Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of ₹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.

The interim surplus will help the Center’s ability to meet the revised fiscal deficit target of 3.4% for this fiscal. Inclusive of the ₹40,000 crore transferred by the central bank as final dividend for 2017-18, the Centre has earned a total of ₹68,000 crore as dividend from the RBI for the 2018-19 fiscal. 

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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.