In the last five years, the Reserve Bank of India (RBI) has transferred around Rs.2.5 lakh crore to the government, which was around 75% of the Central Bank’s income. While the analyzing the governments account finance last year, RBI’s income, expenditure, and surplus was scrutinized by the Auditor General and the Comptroller and was found that between 2013-14 and 2017-18 there was a surplus transfer to the Centre. They also figured out that there was an income of Rs. 3.3 lakh crore from which the Central bank had transferred Rs. 2.48 crore. Around 83% of RBI’s income was transferred to the Centre as a surplus, which was the highest payout in the year 2015-16.
As the government is keen to upsurge the payout, RBI’s reserves have a major bone of dispute. The Economic Survey has been added to the dissonance in recent years and has pointed out that RBI has advanced reserves than other Central banks. It has been noticed that in the recent past, RBI has been transferring surplus of around Rs. 65,000 crore annually to the government, excepting 2017, at the time when its expenditure double to more than Rs. 31,000 crore. The RBI’s expenditure remained below Rs. 15,000 crore until 2016-17, but went up due to the higher cost of printing currency notes at the time of demonetization.
To conclude this, the Deputy Governor of RBI, Viral Acharya had hit out at the government in quest of higher dividend and mentioned the example of Argentina, wherein a comparable development took place around eight years ago, to debate about the Central bank’s autonomy should not be conceded. This issue was one of the most vital agenda items at the Marathon Board meeting of the RBI.