Higher surplus transfer to govt an accounting issue, driven by lower provisioning

The Reserve Bank of India on Friday said the huge jump in surplus funds transferred to the central government was "purely an accounting issue" and not related to any policy change, as there was lower risk capital provisioning due to a slower expansion of its balance sheet last fiscal.
Ever since RBI announced the transfer of Rs 99,122 crore surplus funds to the government for the nine-month period ended March 2021, which is nearly double of what was budgeted earlier, a slew of concerns have been raised about the move.