Context:

• The Reserve Bank of India (RBI) has approved the transfer of Rs 2.11 lakh crores as surplus to the Union government for the FY-2023-24, based on the Economic Capital Framework (ECF).

Economic Capital Framework (ECF)

• The Economic Capital Framework (ECF) adopted by the RBI in 2019 as per recommendations of the Bimal Jalan committee.
• The economic capital framework provides a methodology for determining the appropriate level of risk provisions and profit distribution to be made under Section 47 of the RBI Act, 1934. 
• As per this provision, the central bank is required to pay the balance of its profits to the central government after making provision for bad and doubtful debts, depreciation in assets, and contributions to staff.