The Reserve Bank of India’s central board of directors have approved surplus transfer of ₹2,10,874 crore to the central government for FY24. It is much higher than both the budgeted and street estimates of ₹1-lakh crore surplus. The previous highest surplus transfer was ₹1,76,051 crore in 2018-19. RBI transferred Rs.87,416 crore for FY23.
The RBI has been transferring ‘surplus’ funds based on the ECF formula since 2018-19. Let’s have a look at the amount of surplus transferred by RBI to the central government year wise. But before this, let’s understand what is this Surplus?
What is Surplus?
The difference between RBI’s income and expenditure is Surplus. RBI transfers the surplus to the government after making provisions for reserves and retained earnings. RBI transfers the surplus, in accordance with Section 47 (Allocation of Surplus Profits) of the Reserve Bank of India Act, 1934.
Now let’s understand what is RBI’s income and expenditure. RBI also earns money and spends money via various ways.
- RBI’s Income:
- Interest on holdings of domestic and foreign securities.
- Fees and commissions from its services.
- Profits from foreign exchange transactions.
- Returns from subsidiaries and associates.
- Expenditure of RBI:
- Printing of currency notes.
- Payment of interest on deposits and borrowings.
- Salaries and pensions of staff.
- Operational expenses of offices and branches.
- Provisions for contingencies and depreciation.
The difference of this income and expenditure is the surplus.
RBI Surplus Transfer Year Wise Data
| Year | Surplus Transfer (Rs. crore) |
|---|---|
| 2023-24 | 2,10,874 |
| 2022-23 | 87,416 |
| 2021-22 | 30,307 |
| 2020-21 | 99,126 |
| 2019-20 | 57,128 |
| 2018-19 | 1,76,015 |
