RBI to transfer ₹2,10,874 cr. surplus to Centre for FY24

• Reserve Bank of India’s board approved the transfer of a record surplus to the Union government for the accounting year 2023-24.

Highlights:

• The latest transfer by the RBI is more than double the ₹87,416 crore that it had transferred in FY23.
• The Board also decided to increase the Contingent Risk Buffer (CRB) to 6.50% for 2023-24, from 6% in the previous year.
• The transferable surplus for the year (2023-24) has been arrived at on the basis of the Economic Capital Framework (ECF) adopted by the Reserve Bank as per recommendations of the Expert Committee to Review the extant Economic Capital Framework of the Reserve Bank of India,
• The larger dividend was realised owing to higher RBI income from both domestic and foreign assets, thus raising the quantum of profits booked

Prelims Takeaway

• ECF
• CRB