An exceptional year

Govt needs to reduce dependence on RBI

The Reserve Bank of India (RBI) has released its Annual Report for 2018-19, which explains its actions over the past year and outlines expectations for the broader economy. The Annual Report comes shortly after reports that the RBI will transfer a considerable amount, over Rs 1.7 trillion, to the government’s coffers this year. This is thanks to a much larger surplus of Rs 1.23 trillion, with excess provisioning making up the remainder. This followed the recommendations of a high-level committee led by former RBI governor Bimal Jalan. The surplus is high partly due to an acceleration in open market operations