logo
logo
Sign in

Why Did RBI Approve To Transfer Emergency Funds To Govt.

avatar
help flypped
Why Did RBI Approve To Transfer Emergency Funds To Govt.

RBI fund transfer: On the previous Monday, the Reserve Bank of India (RBI) approved the Bimal Jalan committee’s proposal and approved to transfer 1.76 Lakh Crore from its reserves to the central government lead by Narendra Modi (RBI fund transfer).

This is the highest transfer in the history of Reserve Bank and they approved Rs 500 billion of the dividend, and this financial year is 2.5 times greater than the previous year.

The reserve bank in known as the bank of banks and has the highest authority as it can impact the Indian Economy.

From the total reserve of the RBI, they have to keep 70% as the annual dividend, and the surplus transfer to the Union Government on regular basis as the budget of financial year (RBI fund transfer to government).

Though is it good for the government to have more funds to spend for public welfare, but there are some people who believe it would affect the Reserve Bank of India because it might reduce the value of their investments.

The former RBI Governor Bimal Jalan headed a committee which allowed the union govt to access the contingency funds, and the Central Bank also approved the suggestion, therefore, transferring Rs 1.76 Lakh Crore considering the recession and emergency like situation.

collect
0
avatar
help flypped
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more