Shaktikanta Das, Governnor of The Reserve Bank of India, on Friday approved the transfer of ₹57,128 crore as surplus to the government for the accounting year 2019-20. Last year, RBI's board approved a record payment of ₹1.76 lakh crore to the government, which included ₹1.23 lakh crore as dividend and ₹52,640 crore from surplus capital.
The transfer, while lower than last year, is in line with what the government had budgeted for. In comments made after the presentation of the Union Budget, government officials had pegged the RBI surplus transfer for the year at about Rs 60,000 crore. "The surplus to be transferred by the RBI to the central government mildly trails the budgeted amount.
However, this shortfall pales in comparison with the Covid-induced revenue shock from tax and non tax revenues and disinvestment proceeds, which we assess at over Rs 6 lakh crore relative to the Government of India's FY21 budget estimates," said Aditi Nayar, principal economist at ICRA.
The RBI’s foreign exchange reserves stood at $538 billion on August 7, more than $100 billion addition in a year. Foreign exchange reserves were $429 billion a year ago.
“In a year when the RBI has a larger LAF (liquidity adjustment facility) programme, there would be a tendency for more money to be earned by the central bank. Conversely in FY21, for instance, where the RBI has been more active with the reverse repo, net earnings could be lower as payouts would be more than receipts from repo such as targeted long-term repo operations (TLTRO),” said Madan Sabnavis, chief economist of CARE Ratings.
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