RBI pays Rs28,000 cr to govt as interim dividend
19 February 2019
The Reserve Bank of India (RBI) has decided to transfer Rs28,000 crore to the government account as interim dividend for the period of July to December 2018. The decision was announced at a meeting of the Central Board of the RBI in New Delhi on Monday.
After a brief interaction with finance minister Arun Jaitley, the board reviewed the current economic situation, global and domestic challenges and other specific areas of operations of the Reserve Bank.
“Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of Rs280 billion to the central government for the half-year ended 31 December 2018.” This is the second successive year that the Reserve Bank will be transferring an interim surplus, the RBI noted.
Jaitley, while addressing the post-Budget meeting of the RBI Central Board, had broadly outlined the various reforms and policy measures taken by the government over the last four years and the effects thereof.
Transfer of interim surplus would help the government finance various policy initiatives that were announced during interim Budget and will help to manage its fiscal position and also improve liquidity in the system.
Government needs funds for key decisions during the Budget presentation, including direct annual income transfer of Rs6,000 to farmers in three equal installments.
With this surplus transfer, the total dividend payout by the RBI to the government in FY19 stands at Rs68,000 crore. The RBI follows the July-June fiscal calendar.
According to a written reply by finance ministry in Rajya Sabha on 12 February, the RBI transferred Rs 40,000 crore in August 2018 as excess surplus to the government.