RBI approves transfer of Rs 99,122 crore as surplus to Center:

The Reserve Bank of India will transfer a surplus of Rs 99,122 crore to the government for the nine months ended March 31, 2021 the central bank said in a press release of Friday. The RBI is transitioning to an April-March accounting year from FY22.
The surplus of Rs 99,122 crore was decided on while holding the contingency risk buffer at 5.5% the RBI said after a meeting of the central bank.
Highest since 2018-19
The surplus transfer is the highest since 2018-19, when the central bank had transfferred Rs 1.75 lakh crore, which included a one-time payout on account of a change in the RBI’s Economic caital Framework. Under the new framework, the RBI is required to maintain a contingency risk buffer of 5.5-6.5% of its balance sheet. The RBI has chosen to maintain the lowest required buffer.
What could have led to higher Surplus?
In FY21, the RBI would have earned income from a larger amount of open market operations as bond purchases by the central bank raises the amount of interest it earns. Larger foreign exchange reserve also add to its earnings.

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