Business Standard

Monetary policy will be calibrated to rein in inflation: RBI annual report

Surplus to government fell due to large transfer to Contingency Fund

reserve bank of india, rbi

In line with the objective to bring down inflation, the RBI has started withdrawing liquidity from the banking system.

Manojit Saha Mumbai
The Reserve Bank of India (RBI) will follow a nuanced approach in the wake of inflation risks from high commodity prices and the monetary policy will be calibrated while ensuring adequate liquidity to support the needs of the productive sectors of the economy, said the central bank’s Annual Report for 2021-22, released on Friday.

The lower surplus transferred to the government at Rs 30,307.45 crore in 2021-22 against Rs 99,122 crore in the previous year was due to a sharp increase in the Contingency Fund.

“The lower-than-expected dividend was due to higher provisioning and interest cost on LAF [liquidity adjustment

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 27 2022 | 12:33 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to