RBI transfers Rs 65,876 crore surplus to govt

Mumbai: The Reserve Bank on Thursday said it will transfer to the government Rs 65,876 crore of its surplus, generated through investment activities, which is a tad lower than last fiscal.

"The board today approved the transfer of surplus of the Reserve Bank for the year 2015-16 amounting to Rs 65,876 crore to the government. The amount was Rs 65,896 crore for the previous year," the central bank said in a statement after the board meeting here today.

The surplus is generated through RBI's investment activities, primarily in other sovereign bonds like that of the US T-bills, which is its single largest investment source.

Last year, the surplus payout was 25 percent more than the previous financial year, prior to which it has been much lower.

Since the past three years, the government has been making its budget calculations about the RBI surplus payouts public as non-tax revenue. This year's payout is almost the same as the budget estimate.

The transfer comes amid calls to use RBI's excess funds for recapitalising the NPA-saddled state-run banks, which was suggested first by chief economic advisor Arvind Subramanian's in the last Economic Survey.

The RBI brass, led by outgoing Governor Raghuram Rajan, has been opposing the move.

The Reserve Bank board held its 559th meeting at the central bank headquarters at Mint Road here.

Subramanian, along with government nominee Shaktikanta Das (the economic affairs secretary) was present at the meeting, the statement said.

Other directors, including Damodar Acharya, N Chandrasekaran, Bharat Doshi and Sudhir Mankad also attended the meeting along with deputy governors Urjit Patel, R Gandhi, SS Mundra and NS Vishwanathan, it said.

"The board reviewed the current economic situation, global and domestic challenges and policy responses and other specific areas in the working of the Reserve Bank," it said.

The board also discussed the draft annual report of the Reserve Bank for 2015-16, it added.