Following Reserve Bank of India’s record transfer of Rs 1.76 lakh crore to the government, the central bank’s contingency fund, useful in fighting any exigency, has dipped to Rs 1.96 lakh crore as of June 30, according to RBI’s annual report for FY19.
After the payout to the government, “the balance in the contingency fund as of June 30, 2019, was Rs 1,96,344 crore compared to Rs 2,32,108 crore as of June 30, 2018,” the annual report said.
The RBI’s transfer of Rs 1,76,501 crore to the government comprised of Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board on Monday. The transferred amount is over three times the five-year average of Rs 53,000 crore.
The annual report says the RBI computed exchange gains/losses using the weighted average cost method resulting in an impact of Rs 21,464 crore. It also said income from domestic sources increased 132.07 per cent to Rs 1,18,078 crore from Rs 50,880 crore in the previous fiscal.