New Student Offer - Use Code HELLO

Register Now

RBI will Transfer Rs 1.76 lakh Crore to the GOI

Published on August 27, 2019
Current context: RBI to transfer Rs1.76 Lakh crore to Government of India under ‘Surplus Distribution Policy’ that include interim dividend of Rs28,000 crores paid on February 2019.
RBI will Transfer Rs 1.76 lakh Crore to the GOI
  • Surplus distribution policy was recommended by the Bimal Jalan committee which was formed by RBI to review its economic capital framework and suggest the quantum of excess provision to be transferred to the Government of India.
  • RBI board accepted all recommendation of Bimal Jalan Committee.
  • Committee distinct 2 components of economic capital
    1. Realised equity: it could be used for meeting all risks or losses which were primarily build up from retained earning.
    2. Revaluation balances: this is risk buffer against market risk as they represent unrealised valuation gains and hence were not distributable.
  • Keeping in mind about financial and external stability risks in the country’s savings for a ‘rainy day’, the committee has recommended to maintain 6.5% to 5.5% the RBI’s balance sheet (of which 5.5% to 4.5% for monetary and financial stability risks & 1% for credit and operational risks).
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu