RBI has decided to pay Rs 28,000 Crore as interim surplus to Government of India for the half-year ended December 2018. This is the second successive year that the RBI will be transferring an interim surplus.
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.
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.