RBI to transfer Rs 1.76 lakh crore to government, Congress questions transfer

On Monday, the apex bank approved transfer of Rs 1.76 lakh crore dividend and surplus reserves to the government-a move expected to help the government stimulate the slowing economy without widening the fiscal deficit.

The excess reserve transfer is in line with the recommendation of former RBI governor Bimal Jalan-led panel, which was constituted to decide the size of capital reserves that the central bank should hold.

Aday after the Reserve Bank of India (RBI) decided to transfer a record high surplus of Rs 1,76,051 crore to the government, the Congress party said "looting" the central bank would not help in reviving the economy.