85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
In a board meeting, the Reserve Bank of India (RBI) has approved the transfer of Rs 2.11 trillion ($25.35 billion) as surplus to the Union Government for the fiscal year ended March.
“The Board has approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24,” the RBI has said in a statement.
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As per the interim budget estimates for fiscal year 2024/25, the Union Government had budgeted for a dividend of Rs 1.02 trillion from the central bank, state-run banks and other financial institutions.
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Further, the board of RBI has also decided to raise the contingency risk buffer to 6.5 per cent from 6 per cent previously.
During the accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of Covid-19 pandemic, the Board had decided to maintain the CRB at 5.50% of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity.
With the revival in economic growth in FY 2022-23, the CRB was increased to 6 per cent. As the economy remains robust and resilient, the Board has decided to increase the CRB to 6.50 per cent for FY 2023-24.
At the meeting, the Board reviewed the global and domestic economic scenario, including risks to the outlook.
It also discussed the working of the Reserve Bank during the year April 2023–March 2024 and approved the Reserve Bank’s Annual Report and Financial Statements for the year 2023-24.
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