Government May Get Rs 10,000 Crore From RBI as Interim Dividend
RBI Governor Urjit Patel last month said the central bank will continue to transfer surpluses to the government in 'mechanical way' as it has been doing in the past.
New Delhi: The government is likely to receive an interim dividend of Rs 10,000 crore from Reserve Bank of India (RBI) this month, sources said. According to them, the government expects the RBI to pay a total dividend of about Rs 45,000 crore for financial year 2017-18.
Talks between the RBI and the government over the payment of dividend are still on, sources said, adding that the final call is yet to be taken. An email sent to RBI in this regard did not elicit any response.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others.
In August 2017, RBI had paid a dividend of Rs 30,659 crore for its fiscal year ended June 2017. It was less than half the Rs 65,876 crore it had paid for 2015-16. The government has budgeted for a Rs 58,000 crore dividend from RBI for the current fiscal year.
RBI's profit was about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it has retained towards risks and reserves. So the government has made a suggestion that the Rs 13,000 crore may also be transferred, the sources said.
RBI Governor Urjit Patel last month said the central bank will continue to transfer surpluses to the government in 'mechanical way' as it has been doing in the past. There were media reports that the RBI may give an additional dividend to the government in the current fiscal.
The reports stated that the government may ask the RBI to transfer close to Rs 13,000 crore from its surpluses with the apex bank to help in the recapitalisation of state-run banks.
"We always share the dividend with the government and we have already done that this year. That is something which is done in a mechanical way and we will continue doing so, going forward," Patel had said.
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