By Administrator_ India
The Reserve Bank of India has decided to transfer a surplus of Rs 99,122 crore to the central government, it said.
The decision was taken at the 589th meeting of the Central Board of Directors of RBI on May 21, 2021.
Last year, RBI transferred only 44 percent of its surplus to the central government, at Rs 57,128 crore. This was also the lowest surplus transfer in the past seven years before last year.
In 2019, RBI transferred Rs 1,23,414 crore surplus to the central government.
As the manager of Government finances, every year, the RBI pays a dividend to Government to help with the Government’s finances from its surplus profit. The RBI was founded in 1934 and has been operating according to the Reserve Bank of India Act of 1934. Chapter 4, section 47 of the Act, titled “Allocation of Surplus funds” mandates for any profits made by the RBI from its operations to be sent to the Centre.