RBI's Rs 87,416-cr surplus provides a welcome fiscal boost for Centre

This is not the first time that the RBI has paid a windfall surplus to the Centre

The Reserve Bank of India’s (RBI’s) decision to transfer Rs 87,416 crore as surplus for the current financial year (FY24) will provide a welcome fiscal boost to the Centre.

The amount, decided at the RBI’s board meeting on Friday, which will be counted as part of the Centre’s non-tax revenue for FY24, is 82 per cent more than the combined target for surplus from the RBI and state-owned banks and financial institutions of Rs 48,000 crore.

Provided all other Budget assumptions, including tax revenues, expenditure and projected nominal GDP, remain unchanged, just the surplus from the RBI would take the