RBI to transfer Rs 99,122 crore as surplus to government

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NEW DELHI: The Reserve Bank of India (RBI) on Friday approved the transfer of Rs 99,122 crore as surplus to the government for accounting period of nine months ended March 31, 2021 (July 2020-March 2021).
The decision was taken during the 589th meeting of central board of directors of RBI under the chairmanship of governor Shaktikanta Das through video conferencing.

The RBI board further decided to maintain the contingency risk buffer at 5.50 per cent.
“With the change in the Reserve Bank’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 central bank for the transition period,” the board stated in a notification.
The RBI board also reviewed the current economic situation, global and domestic challenges and recent policy measures taken by the central bank to mitigate the adverse impact of the second wave of Covid-19 on the economy.

There are two unique features about RBI’s financial statements. First, it is not required to pay income tax and second, it has to transfer to the government the surplus left over after meeting its needs.
RBI’s income comes mainly through interest on the securities it holds.