Mumbai: The Reserve Bank of India (RBI) on Monday, August 26, 2019, approved the fund transfer to the tune of Rs 1.76 lakh crore in form of the dividend to the government.
The decision on the quantum of the fund to be transferred to the government has been taken in due consultations in the high-level panel chaired by former RBI Governor Bimal Jalan.
"The Central Board of the Reserve Bank of India (RBI) today decided to transfer a sum of Rs 1,76,051 crore to the Government of India (Government) comprising of Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board today," RBI said in a statement.
Bimal Jalan-led committee has examined the RBI's financial resilience, cross-country practices, statutory provisions and the impact of the RBI’s public policy mandate and operating environment on its balance sheet and the risks involved before recommending the surplus transfer to the government.
"The committee has recommended the adoption of Expected Shortfall (ES) methodology under stressed conditions (in place of the extant Stressed-Value at Risk) for measuring the RBI’s market risk on which there was growing consensus among central banks as well as commercial banks over the recent years," RBI said.
As financial resilience was within the desired range, the RBI's entire net income of Rs 1,23,414 crore for the year 2018-19, of which an amount of Rs 28,000 crore has already been paid as interim dividend, will be transferred to the Government of India. This is in addition to the Rs 52,637 crore of excess risk provisions which has been written back and consequently will be transferred to the Government.
The RBI board also reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank and, further, approved the Annual Report of the Reserve Bank for the fiscal year 2018-19.
Published On : 27-08-2019
Source : Times Now News
