Govt eyes higher RBI surplus this year as Covid-19 decimates tax revenues

Data available on the RBI's website shows that, as of April 1-June 21, the RBI has purchased more than Rs 1.3 trillion in government bonds

With tax revenue shrinking owing to the pandemic, the Centre is expecting the Reserve Bank of India (RBI) to transfer a higher-than-budgeted surplus for the second year in a row.

While last fiscal year was about capital reserves and the recommendations of the Bimal Jalan panel, this year the thinking at the Centre is that since the RBI has ramped up purchases of government bonds, the interest earned on them will be transferred to the exchequer as dividend. The RBI’s website shows during April 1-June 21, the central bank purchased more than Rs 1.3 trillion in government bonds through open