In Today’s News:
- RBI will transfer ₹57,128 crore surplus to Centre for FY20.
1. RBI will transfer ₹57,128 crore surplus to Centre for FY20.
Transfer of ₹57,128 crores as surplus to the government for the accounting year 2019-20 has been approved by the board of the Reserve Bank of India (RBI). RBI had transferred ₹1.76 lakh crore as surplus last year to the Central Government. This payout from RBI to Central Government will support the Centre’s finances during the current pandemic time.
Prelims GS – Economic Development
RBI surplus transfer:
- The transfer of surplus from RBI to the central government is based on Section 47 of the RBI Act,1934.
- Section 47 of the RBI Act, 1934 deals with the ‘Allocation of surplus profits’.
- Section 47 of RBI Act, 1934 says that “After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and for all other matters for which provision is to be made by or under this Act or which are usually provided for by bankers, the balance of the profits shall be paid to the Central Government”.
(Note: This section number is very important for UPSC civil service exam. Last year, it was in the news for a long time.)
Click here to view RBI Act,1934 pdf document.
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