ALLOCATION OF SURPLUS FUNDS BY RBI

About:

• The RBI board approved the transfer of Rs 57,128 crore as surplus to the central government for the accounting year 2019-20, while deciding to maintain the contingency risk buffer at 5.5%.
  
  
• The decision was taken at the 584th meeting of the Central Board of the RBI chaired by governor Shaktikanta Das.
  
  
• Earlier in the Union Budget, the government had budgeted Rs 60,000 crore as dividend from the central bank as well as state-run financial institutions.
  
  
• This push from the Reserve Bank comes at a time when the government is staring at a record high fiscal deficit of Rs 6.62 lakh crore in the April-June period as the coronavirus affected the Centre's revenue targets.