The Reserve Bank of India (RBI) approved paying a higher-than-expected Rs 99,122 crore to the government as a dividend, providing cushion to the state at a time when a crippling second wave of the novel coronavirus may strain public finances.
The decision to transfer the surplus amount for the accounting period of nine months ended March 31, 2021 was taken at a meeting of the central board of the RBI, held through video conferencing, under the chairmanship of Governor Shaktikanta Das.
The surplus is commonly called 'dividend'. The accounting year of RBI is truncated as the Reserve Bank of India (RBI) has aligned its July-June accounting year with the government's April-March fiscal year. The RBI has followed a July-June financial year since 1940, when it moved away from a January-December financial year. The RBI also decided to maintain a Contingency Risk Buffer at 5.50 percent in line with recommendations of the Bimal Jalan Committee report. The panel had prescribed a Contingency Risk Buffer range of 6.5 percent to 5.5 percent for the RBI.
The Board also approved the transfer of Rs 99,122 crore as surplus to the central government for the accounting period of nine months ended March 31, 2021 (July 2020-March 2021), while deciding to maintain the Contingency Risk Buffer at 5.50 percent." The RBI had transferred Rs 57,128 crore as surplus to the central government for the accounting year 2019-20.
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