RBI to transfer Rs1.76 Lakh Crore to Modi government

Reserve Bank of India
Reserve Bank of India (RBI)

New Delhi, Aug 27: Accepting the recommendations of Bimal Jalan Committee, the Reserve Bank of India (RBI) will transfer a sum of Rs. 1,76,051 crore to the Modi government which comprises a surplus of Rs. 1,23,414 crore for 2018-19.

“The Central Board of the Reserve Bank of India (RBI) today decided to transfer a sum of Rs. 1,76,051 crore to the Government of India (Government) comprising of Rs. 1,23,414 crore of surplus for the year 2018-19 and Rs. 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board today,” the RBI said in a statement.

The Bimal Jalan Committee was constituted to suggest appropriate reserves that RBI should maintain and dividends it should pay to the government.

The Economic Capital Framework report, which was submitted to RBI Governor Shaktikanta Das on Friday, has reportedly suggested that the RBI should transfer surplus cash reserves to the government in a phased manner over three-five years.

In FY19, the government had received Rs 40,000 crore as interim dividend from the RBI. The RBI Board is likely to give a go-ahead for an additional Rs 28,000 crore dividend announced by the apex bank in February. In FY20 so far, the RBI has announced dividend worth Rs 9,000 crore to the central bank.

Finance Minister Nirmala Sitharaman had budgeted to receive dividends worth over Rs 1.6-lakh crore from the central bank this year.

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