RBI gives a windfall of Rs 87,000 crore to the government

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The Reserve Bank of India (RBI) has announced that it has transferred a surplus of Rs 87,000 crore to the government for the year ended June 30, 2019. The amount is significantly higher than the Rs 68,000 crore surplus transferred to the government for the 2018-19 financial year.

The transfer of surplus surplus includes Rs 28,000 crore as dividend. The RBI credited the higher transfer for the transfer of surplus to more efficient public sector banks, a moderation in interest payments and an increase in other income. This is the first time the RBI has exceeded the amount transferred to the government in the last 32 years.