Question

Under which section of rbi act the reserve bank of india tranfers the surplus profit to government of india

Answer 1

Answer:

Explanation:

Under Section 47 of the Reserve Bank of India Act, 1934 the Reserve bank of India transfers the surplus profit to Government of India.

As per the above section The Reserve Bank of India (RBI) can transfers the  surplus profits to the Government subject to certain provisions. These provisions are

• Making provision for bad and doubtful debts
• Charging depreciation on assets
• Contributions to staff and superannuation funds
• Provide provision on all matters which is required or which comes under this Act or which bankers usually provide.

The balance or the surplus left after meeting the above provision can then be  transferred to the Central Government.

Hope this helps.