asset development fund
Answers
Explanation:
On August 26, 2019, the RBI’s Central Board decided to transfer Rs 52,637 crore to the government along with the RBI’s net income of Rs 1,23,414 crore for the year 2018-19. The Central Board of Directors (CBD) is the administrative body of the RBI. Total transfer comprising of this excess reserve and the net income share is around Rs 1.76 lakh crores.
Regarding the net income transfer (Rs 123414 crore), it is the share of the government in the RBI’s net income. Since government is the sole shareholder of the RBI, it is customary to transfer the amount to the government. Net income is effectively the profit of the RBI that has been occurred after meeting all expenses. But the interesting fact is that nearly 99% of the RBI’s profit is transferred to the government. This is the practice over the last five years.