Explained: What is the fuss all about in RBI's fund transfer to govt?

What is the fuss all about in the Reserve Bank of India's (RBI's) fund transfer to the government? Business Standard explains

What has happened?

The RBI board decided on Monday to transfer Rs 1,23,414 crore of its surplus, generated in fiscal year 2018-19 (FY19). The RBI follows a July-June year. The central bank has already given the government Rs 28,000 crore as interim dividend.

The Bimal Jalan Committee on Economic Capital Framework (ECF) has suggested an additional transfer of Rs 52,637 crore of excess provisions. 

The government will immediately get a net of Rs 1,48,051 crore.

Does RBI transfer its surplus every year?

Yes, it does. According to the suggestions of a committee headed by Y H Malegam, the RBI has