RBI approves ₹87,416 cr surplus transfer to Centre for FY23

The Reserve Bank of India (RBI) board has approved the transfer of ₹87,416 crore as surplus to the central government for the accounting year 2022-23. The central bank has also decided to raise the contingency risk buffer to 6% from 5.5% earlier, the central bank said in a release.

The apex bank had transferred ₹30,307 crore to the government in FY22 as against ₹99,122 crore in the previous year, resulting in a decrease of 69.42%.

"The Board also discussed the working of the Reserve Bank during the year April 2022–March 2023 and approved the Annual Report and accounts of the Reserve Bank for the accounting year 2022-23. The Board approved the transfer of ₹87,416 crore as surplus to the Central Government for the accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6%," the central bank said.

The 602nd meeting of the Central Board of Directors of the Reserve Bank of India was held today in Mumbai under the Chairmanship of RBI Governor Shaktikanta Das. The Board in its meeting reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments. 

Deputy Governors Shri Mahesh Kumar Jain, Dr. Michael Debabrata Patra, Shri M. Rajeshwar Rao, Shri T. Rabi Sankar, and other Directors of the Central Board, viz. Shri Satish K. Marathe, Smt. Revathy Iyer, Prof. Sachin Chaturvedi, Shri Anand Gopal Mahindra, Shri Pankaj Ramanbhai Patel, and Dr. Ravindra H. Dholakia attended the meeting. Shri Ajay Seth, Secretary, the Department of Economic Affairs also attended the meeting.

The balance sheet of the Reserve Bank (RBI) plays a critical role in the functioning of the country’s economy, largely reflecting the activities carried out in pursuance of its currency issue function as well as monetary policy and reserve management objectives. 

RBI governor Shaktikanta Das had earlier said that domestic growth impulses remained buoyant in the last quarter of FY23. “Looking ahead, the thrust on infrastructure spending by the government would support investment activity. The drag from net external demand is moderating. Overall, the broadening of economic activity and the strength of the external sector have allowed us room to remain steadfastly focused on inflation,” Das said at the April monetary policy committee (MPC) meeting.

While the RBI is yet to put up the FY23 annual report on its website, in its FY22 annual report, it said the size of the Reserve Bank's balance sheet increased by 8.46% as on March 31, 2022, mainly reflecting its liquidity and foreign exchange operations during the year. While income for the year increased by 20.14%, expenditure increased by 280.13%.