The Reserve Bank of India (RBI) will transfer.....crore of its surplus money to the government, the highest since 2015-16, in a partial relief for the latter struggling to replenish public sector banks.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Reserve Bank of India (RBI) will transfer____crore of its surplus money to the government, the highest since 2015-16, in a partial relief for the latter struggling to replenish public sector banks.

A	Rs.70, 000
B	Rs.50, 000
C	Rs.40, 000
D	Rs.90, 000

Explanation:

Detailed explanation-1: -The act mandates that profits made by the central bank from its operations be sent to the Centre. As the manager of its finances, every year the RBI also pays a dividend to the government to help with the finances from its surplus or profit.

Detailed explanation-2: -The Reserve Bank of India’s (RBI) Board approved a sharply lower surplus transfer of ₹30, 307 crore to the government for the accounting year 2021-22, the lowest in 10 years. This is in sharp contrast to the surplus transfer of ₹99, 122 crore for nine months ended March 31, 2021 (July 2020-March 2021).

Detailed explanation-3: -On the other hand, reverse repo rate is the interest rate paid to commercial banks when they deposit their excess funds in the central bank or when the central bank borrows money from them. As of April 2021, RBI’s repo rate stands at 4% and reverse repo rate at 3.35%.

Detailed explanation-4: -Repo Rate is decided bi-monthly by RBI’s Monetary Policy Committee. RBI Repo Rate 2022 has been 4.40% to date since last year. The RBI has increased the Repo Rate by 40bps.

There is 1 question to complete.