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 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-3: -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-4: -crore, the government nationalised it in January 1949, making the sovereign the “owner”. What the RBI does is transfer the surplus - excess of income over expenditure -to the government.

Detailed explanation-5: -As it has offices and sub-offices in 29 locations, the Reserve Bank appoints other banks to act as its agents for undertaking the banking business on behalf of the governments. The Reserve Bank pays agency bank charges to the banks for undertaking the government business on its behalf.