Question

Is there anything wrong to give surplus fund to government?

Answer 1

Answer:

Explanation:

The surplus transfer in coming years thus, is critically dependent on the excess risk provisioning and subsequent written back from contingency fund to income. As alluded to earlier, the Jalan committee has recommended CRB within the range of 6.5-5.5 per cent of the balance sheet and the final decision of the risk provisioning depends on the central board.

The transfer from contingency fund to income is essentially an accounting arrangement to increase income. Even though it is transparent and formula based, it doesn’t have the potential of true income.

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