Latest GK GS

Updated By: LatestGKGS Desk

RBI approved 57000 Crore dividend to GoI as per RBI Act 1934



Reserve Bank of India (RBI) approved 57 Thousand Crore dividend to Government of India on the eve of 74th Independence Day

The Reserve Bank of India (RBI) on Friday 14th August 2020 approved a dividend payment of Rs 57,000 crore to the government at the 584th meeting of the Central Board of the RBI chaired by governor Shaktikanta Das.

The RBI board approved the transfer of Rs 57,128 crore as surplus to the central government for the accounting year 2019-20. The central bank is successful in maintaining the contingency risk buffer at 5.5%.

According to the RBI Act of 1934, section "Allocation of Surplus funds" mandates for any profits made by the Reserve Bank from its operations to be sent to the Centre.

The RBI primarily earns its profits from the following areas:

1. The interest gets from the purchase and sale of government securities (G-secs).

2. The interest earned from lending to banks and interest earned on bond holdings earned on open market principles.

From this, the net profit is calculated by subtracting the operation expenditures, and other expenses as per the RBI Act.


Latest Reserve Bank Of India (RBI) Updates

» Committee on the Development of Housing Finance Secularization Market; All Details

» RBI to review Agricultural Credit through Internal Working Group (IWG), Key Points

» RBI proposed ₹200 Cr for Small Banks under 'On Tap' License Regime, All Details

» RBI Issues New Rs 20 Denomination Banknote: Details, Features, Color

» Bank of Baroda, Vijaya Bank & Dena Bank Merging Comes Into Effect From 1st April 2019

» Merging of Vijaya Bank, Dena Bank with Bank of Baroda Approved