Contingency Risk Buffer

  • August 15, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject:Economy

Context:

The Reserve Bank of India (RBI) has approved the transfer of ₹57,128 crore as surplus to the government for the accounting year 2019-20, while deciding to maintain the Contingency Risk Buffer at 5.5%.

Concept:

  • The risk provisioning made from economic capital to cover monetary, fiscal stability, credit and operation risks is cumulatively referred to as the Contingent Risk Buffer (CRB).
Contingency Risk Buffer economy