Discuss the significance of surplus transfers by the Reserve Bank of India in the contemporary fiscal framework. Analyse their impact on monetary-fiscal relations.

Topic: Indian Economy and issues relating to planning, mobilization of resources Q6. Discuss the significance of surplus transfers by the Reserve Bank of India in the contemporary fiscal framework. Analyse their impact on monetary-fiscal relations. (10 M) Difficulty Level: Difficult Reference: TH Why the question The record surplus transfer by the RBI to the Union …

RBI Surplus Transfer

Source:  LM Context: The RBI may transfer a record ₹2.5 to ₹3 lakh crore as surplus to the government for FY 2024–25. The Central Board reviewed the Economic Capital Framework (ECF) on May 15, 2025, ahead of deciding the transfer amount. About RBI Surplus Transfer: What is Surplus Transfer? The RBI transfers its net profit—i.e., …