Reserve Bank to transfer R52,679 cr surplus profit to govt

Last year, the RBI had transferred its Rs 33,010 crore surplus profit to the Centre.

By: ENS Economic Bureau
Mumbai | August 12, 2014 12:50 AM IST

1 min read

In a big relief to the government, the Reserve Bank has decided to transfer its surplus profit of Rs 52,679 crore to the Centre, about 60 per cent more than the amount given last year. The amount, to be transferred to the government on Tuesday, is the highest ever in its history.

Last year, the RBI had transferred its Rs 33,010 crore surplus profit to the Centre. The amount will provide some help to the government, which proposes to bring down the fiscal deficit to 4.1 per cent of GDP this fiscal from 4.5 per cent last year.

On the other hand, government bond yields declined following the RBI decision to transfer a higher surplus to the government. Due to the surplus dividend payout by the RBI to the government, the bond auction amount for this week was also lower at Rs 8,000 crore compared with Rs 14,000 crore as per the issuance calendar of dated securities.

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