The central bank transfers the surplus generated from its functions to the government at the end of each financial year, after accounting for any funds transferred to the contingency reserve or the asset development fund.
The Reserve Bank of India (RBI) today said the transfer of surplus to the government rose by 63.08 per cent to Rs 50,000 crore during the financial year ended June 30, 2018. It had transferred a surplus of Rs 30,659 crore to the government in financial year 2016-17.
The central bank transfers the surplus generated from its functions to the government at the end of each financial year, after accounting for any funds transferred to the contingency reserve or the asset development fund. It follows July-June financial year.
“A surplus of Rs 50,000 crore was transferred to the central government in FY18,” RBI said in its annual report for 2017-18. During 2017-18, RBI’s balance sheet increased by 9.49 per cent or Rs 3.13 trillion to Rs 36.18 trillion as on June 30, 2018, from Rs 33.04 trillion as on June 30, 2017, the report said.
The increase on the asset side was mainly due to rise in foreign investments and loans and advances by 11.25 per cent and 849.55 per cent, respectively, it added. On the liability side, the increase was due to increase in notes issued and other liabilities and provisions by 26.93 per cent and 16.95 per cent, respectively.
Domestic assets constituted 23.18 per cent, while the foreign currency assets and gold (including gold held in the country) constituted 76.82 per cent of the total assets as on June 30, 2018, compared with 24.32 per cent and 75.68 per cent, respectively, as on June 30, 2017. During the year, the apex bank made a provision of Rs 14,190 crore and transferred it to contingency fund (CF), according to the report.