The RBI Central Board approved the transfer of ₹57,128 crore as surplus to the Central Govt for the accounting year 2019-20, while deciding to maintain the Contingency Risk Buffer at 5.5%.
The Central Board met under the Chairmanship of Governor Shaktikanta Das, through video conference. This was the 584th meeting of the Central Board, the RBI said in a release.
The RBI’s transfer comes when the Centre’s finances are severely stressed. Its fiscal deficit as on June 30 has already touched 83.2 per cent of the full-year Budget target, mainly due to the precipitous dip in revenues because of the nationwide lockdown imposed to curb Covid-19 spread.
Further, the Central Board discussed the proposal of setting up an Innovation Hub. It also discussed various areas of operations of the bank during the last year, and approved the annual report and accounts of the of the Reserve Bank for 2019-20.
The government has budgeted Rs 60,000 crore as dividends from RBI and state-run banks and financial institutions, according to the Union Budget 2020-21.
RBI’s financial year runs from July-June at present and is scheduled to be harmonised with the government’s April-March fiscal starting FY22, Press Trust of India reported. In the current year, the RBI will have a nine-month financial year, ending in March.
