RBI transfers excess funds to Government

New Delhi: The Reserve Bank of India (RBI) transfers its surplus profits to the Government of India in terms of the provisions of Section 47 of the Reserve Bank of India Act, 1934 .

“After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and for all matters for which provision is to be made by or under this Act or which are usually provided for by bankers, the balance of the profits shall be paid to the Central Government.

The amount of Rs 10,000 crore was received by the Government on 27 March 2018 as interim surplus, out of the total surplus of Rs 50,000 crore for the year 2017-18. The Financial Year of RBI is reckoned for the period July – June, while that for the Central Government is April-March.

This was stated by Shri P. Radhakrishnan, Minister of State for Finance in a Written Reply to a Question in Rajya Sabha today.