New Delhi, August 26: The Reserve Bank of India (RBI) has approved the transfer of Rs 1.76 lakh crore to the central government. The massive amount is part of the central bank's surplus reserves. The monetary transfer is expected to provide an impetus to government expenditure amid the prevalent economic slowdown.

The transfer of dividends to the Centre is as per the guidelines of the recently constituted Bimal Jalan Committee, which laid out the norms of surplus division between the RBI and the government. SEBI Data Says Investors Lost Rs 13 Lakh Crore in 1 Month Post Union Budget 2019

Out of the Rs 1.76 lakh crore being transferred to the government, Rs 1.23 trillion is part of the dividend, wheres, Rs 526.4 billion is from the central bank's surplus capital, the RBI said in a statement.

Update by Reuters:

"The Central Board of the Reserve Bank of India (RBI) today decided to transfer a sum of Rs. 1,76,051 crore to the Government of India (Government) comprising of Rs. 1,23,414 crore of surplus for the year 2018-19 and Rs. 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board today," the RBI statement read.

The Bimal Jalan panel had on Friday submitted a report to RBI Governor Shaktikanta Das, specifying the amount which should be transferred to the Centre from the divides and surplus. Das had approved the panel's report.

Notably, the RBI follows July-June fiscal calendar. The dividend to the Centre, as per the preceding norms, is annually disbursed during the month of August.

(The above story first appeared on LatestLY on Aug 26, 2019 09:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).