Section 47 of the RBI Act, 1934
Statutory Basis of Surplus Transfer
Section 47 of the Reserve Bank of India Act, 1934 establishes the legal framework for distributing the RBI's annual profits. The RBI, unlike commercial banks, does not retain profits for shareholder dividends in the traditional sense — it functions as the nation's central bank, and its net profit (after provisions) is mandatorily transferred to the Central Government. This makes the surplus transfer a statutory fiscal flow rather than a discretionary dividend.
- Provision: Section 47, RBI Act, 1934
- Pre-transfer deductions include: provisions for bad and doubtful debts, depreciation on assets, contributions to staff and superannuation funds, contributions to the Contingency Fund (CF) and Asset Development Fund (ADF)
- The government's share of surplus = Net income − Risk provisions (CRB allocation)
- Decision authority: The RBI Central Board of Directors meets annually to approve the quantum
● Tracked since May 18, 2026 · last seen May 25, 2026 · updates as the daily brief publishes
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