Day 7 – Q 2.What are the differences between the contingency reserve and the surplus of the RBI? How does the transfer of reserves take place from the RBI to the government? Explain. What are the challenges associated with it? Discuss.

2. What are the differences between the contingency reserve and the surplus of the RBI? How does the transfer of reserves take place from the RBI to the government? Explain. What are the challenges associated with it? Discuss.