InvestorQ : How did the RBI manage to transfer a sum of Rs.100,000 crore to the government as surplus?
Anamika Sodhani made post

How did the RBI manage to transfer a sum of Rs.100,000 crore to the government as surplus?

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Angel dcosta answered.
4 weeks ago
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Each year the RBI transfers a surplus to the government after retaining a small portion as buffer capital. For the 9 months to Mar-21, RBI transferred much higher than expected amount of Rs.99,122 crore as surplus transfer. The transfer is for nine months as RBI has shifted its financial year from Jul-Jun to Apr-Mar with effect from FY22. The sharp spike in transfers by RBI was on account of change in valuation of forex gains in the year.

In FY20, the government had only been paid Rs.57,128 crore as surplus transfers so the government had budgeted only Rs.45,000 crore for FY21. The actual amount is more than double the budget and should help tide over the revenue shortfalls for the government. To an extent, this positive surprise would enhance the spending power of the government which is already under a lot of fiscal strain in this year due to heavy spending needs.

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