RBI approves record Rs 2.1 lakh crore dividend to Centre for FY24

PTI

Mumbai, May 22

The Reserve Bank of India will pay a record Rs 2.1 lakh crore dividend to the government for the fiscal ended March 31, more than double of what was budgeted expectation, helping shore up revenue ahead of a new government taking office.

Less borrowing, more funds for growth

• The dividend payout will strengthen the Central Government’s fiscal position. The government can reduce its borrowing which will leave more funds in the banking sector for loans to corporates and consumers to spur economic growth
• The amount is higher than the government expected as the interim budget documents for the ongoing financial year show a dividend of Rs 1.02 lakh crore from the RBI, public sector banks and other financial institutions

The RBI board, at its meeting on Wednesday, approved the transfer of surplus, the central bank said in a statement. The government had budgeted a receipt of Rs 1.02 lakh crore as dividends from the RBI, public sector banks and financial institutions in the interim budget for the fiscal year 2024-25 (April 2024 to March 2025) presented in February this year.

The dividend or surplus transfer by the RBI to the Centre was Rs 87,416 crore for the fiscal 2022-23. The previous high was Rs 1.76 lakh crore in 2018-19. The decision on the dividend payout was taken at the 608th meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.

“The Board...approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24,” the RBI said in a statement. The central government aims to contain the fiscal deficit or gap between expenditure and revenue to Rs 17.34 lakh crore (5.1 per cent of the GDP) during the current financial year.

#Mumbai #Reserve Bank of India RBI