CURRENT AFFAIRS

Detailed explanation-1: -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-2: -The Board approved the transfer of Rs 30, 307 crore as surplus to the Centre for the year 2021-22, while deciding to maintain the Contingency Risk Buffer at 5.50%, ” the RBI statement said.

Detailed explanation-3: -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-4: -RBI recently switched to an April-March fiscal from July-to-June, and the payment this time around is for a nine-month period. The central bank pays dividends to the government every year from the surplus it generates from market operations, investments and printing of currency.