Amid slowing economic growth and rising global uncertainty, the Reserve Bank of India (RBI) board on Monday approved transfer of Rs 1.76 lakh crore surplus reserves to the central government. The surplus transfer, which is 1.25 per cent of the GDP (2018-19), comprises of Rs 1.23 lakh crore of surplus for 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting.
RBI, in consultation with the government, had constituted a six-member expert committee headed by former RBI Governor Bimal Jalan in December last year to review the extant economic capital framework of the central bank.
Top highlights from RBI's board meeting:
Edited by Chitranjan Kumar