Key Highlights: 

  • RBI to provide surplus of Rs 30,659 crore in FY17
  • RBI's surplus in FY17 not even half compared to FY16
  • Demonetisation impacted RBI's income deeply in FY17

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On August 10, 2017, the Reserve Bank of India (RBI) said that its surplus transfer to the Government of India for the fiscal year gone by (July 2016-June 2017) would be Rs 30,659 crore. This was nearly half of what the RBI has been earning and transferring to the government over the past few years. 

Incidentally, the government had expected Rs 58,000 crore in dividend from the RBI in 2017-18. As per the budget estimate, the government had pegged Rs 74,901.25 crore as dividend from the RBI, nationalised banks and financial institutions for the current fiscal, as per PTI. 

RBI did not cite any reasons for such low transfer of surplus but the move did raise concerns on potential fiscal slippages.

This would be lowest transfer of surplus to government since the year 2013 – where it last transferred Rs 33,010 crore to the government. RBI since last three years have seen increase in its surplus. It transferred Rs 65,880 crore in 2016, followed by Rs 65,900 crore in 2015 and Rs 52,680 crore in the year 2014.

RBI dividend to govt halves to Rs 30,659 crore