608th Meeting of Central Board of the Reserve Bank of India

Current Context: The 608th meeting of the Central Board of the Reserve Bank of India (RBI) was held in Mumbai under the Chairmanship of Shri Shaktikanta Das, the Governor.

• Here are the key highlights from the meeting:
• The Board reviewed the global and domestic economic scenario, including risks to the outlook.
• The Board discussed the working of the Reserve Bank during the year April 2023 – March 2024 and approved the Reserve Bank’s Annual Report and Financial Statements for the year 2023-24.
• The transferable surplus for the year (2023-24) has been arrived at on the basis of the Economic Capital Framework (ECF) adopted by the Reserve Bank on August 26, 2019.
• The Board decided to increase the Contingent Risk Buffer (CRB) to 6.50 per cent for FY 2023-24.
• The Board approved the transfer of ₹2,10,874 crore as surplus to the Central Government for the accounting year 2023-24.
• This decision to pay the highest-ever dividend to the government was taken at this meeting.
• The RBI will pay a record dividend of Rs 2.1 lakh crore to the government for the fiscal year ending March 31.
• This payout is more than double the anticipated amount, providing a substantial boost to government revenue.
• The previous high was Rs 1.76 lakh crore in 2018-19.

Question:

1. What percentage was the Contingent Risk Buffer (CRB) increased to for FY 2023-24?

• A) 5.50%
• B) 6.00%
• C) 7.00%
• D) 6.50%

Answer: D) The Board decided to increase the Contingent Risk Buffer (CRB) to 6.50 per cent for FY 2023-24.