Current Context: Reserve Bank of India has given approval to transfer dividend of Rs 57,128 crore to the central government.
- The approval is given with an aim for the accounting year 2019-2020 sharply lower by 67.5% with respect to Rs 1.76 lakh last year. And to maintain Contingency Risk Buffer at 5.5%.
- The transfer of funds is done under the chairmanship of RBI Governor, Shaktikanta Das.
- This transfer of dividend amount to central government will allow to tackle fiscal deficit and recapitalize public sector during this pandemic state of COVID-19.
- The amount is transferred as per the Economic Capital Framework (ECF) which was adopted by RBI last year. As per ECF norms, the contingency risk buffer (CRB) has to be maintained at 5.5-6.5 % of the balance sheet. Therefore, RBI board decided to maintain the buffer at 5.5 % this year.
- Also, RBI has decided to establish Innovation Hub.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
