New Delhi:The Reserve Bank of India on Monday decided to transfer Rs 1.76 trillion in dividend and surplus reserve to the government.
''The Central Board of the Reserve Bank of India (RBI) to transfer a sum of Rs 1,76,051 crore to the Government of India comprising 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,'' according to an official statement here.
The RBI, in consultation with the Government of India, had constituted an Expert Committee to Review the Extant Economic Capital Framework of the Reserve Bank of India with Chairman Dr Bimal Jalan.
The Committee has since submitted its report to the Governor of the RBI. The Committee's recommendations were based on the consideration of the role of central banks' 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.
The Committee reviewed the status, need and justification of the various reserves, risk provisions and risk buffers maintained by the RBI and recommended their continuance. The Committee also recommended the development of methodologies for assessing the concentration risk of the forex portfolio as well as jointly assessing the RBI's market-credit risk.
The Central Board accepted all the recommendations of the Committee and finalised the RBI's accounts for 2018-19 using the revised framework to determine risk provisioning and surplus transfer.(UNI)