Accounting gains

RBI's higher surplus transfer has limits

The Reserve Bank of India (RBI) released its annual report on Thursday, its first after a shift in the accounting year to April-March. This is a welcome change as it will align the central bank’s accounting year with that of the government and most of the private sector. Consequently, the latest annual report only covers nine months ended March 31, 2021. The RBI’s accounts were eagerly awaited by the financial markets as the announcement of a larger than expected surplus transfer (Rs 99,122 crore for nine months, compared to Rs 57,127.53 crore for the previous full year) to the government