RBI transfers surplus profit to Government of India
The Reserve Bank of India's Central Board, in its meeting held yesterday, approved the transfer of surplus profit to the Government of India amounting to Rs.45,719.60crore for the year ended June 30, 2007. It includes Rs.34,308.60crore on account of profit on sale of SBI shares held by the Reserve Bank to the Government of India. Excluding this amount, the transfer of surplus for the year ended June 30, 2007 amounts to Rs.11,411.00crore, as against Rs.8,404.00crore for the year ended June 30, 2006.
What is all this accounting circus all about? First SBI shares held by RBI is sold to the Government, so now SBI is almost fully with government, but the government does not have so much money to buy all those SBI shares. So RBI transfers that money to the government!
If a couple of private parties were doing this kind of things, the government would have booked all types of cases against them.