The Council of the Reserve Bank of India met on Thursday and considered a change in the Central Bank capital structure, a move that could possibly be transferred to the government to the government every year. Governor Sanjay Malhotra was chairman of a council meeting, which assessed ‘the economic capital framework’ of the RBI, the central bank said in a statement. The current policy requires the RBI to keep 5.5% -6.5% of its balance sheet as capital reserves. A reduction in the relationship would enable the central bank to transfer more of its surplus to the government, which helps to ease its fiscal pressure. The RBI is expected to pay a record dividend of as much as 3.5 trillion rupes ($ 41 billion) to the government this year, which helps to compensate a shortage of tax revenue. The friction point in the past argued that the central bank has more capital than it needs, which led to tensions between the RBI and the Ministry of Finance. In 2018, a committee led by former RBI Governor Bimal Jalan proposed a captain on the savings that the central bank should hold as a risk puff, and a periodic review every five years. These recommendations applied until June 30, 2024. The RBI pays dividends to the government every year from the profits it earns and the investments and the pressure of notes and coins. In its budget in February, the government estimated in the inflow of 2.56 billion rupes of the RBI and financial institutions in the financial year ending in March 2026.
-
-
-
-
