RBI TO GIVE RS 28,000 CR TO CENTRE AS DIVIDEND
Context:
- The Reserve Bank of India (RBI) will transfer Rs 28,000 crore as interim dividend to the government.
- RBI had already transferred Rs 40,000 crore to the government in August 2018 and with the additional 28,000, The government would receive a total of Rs 68,000 crore from the central bank in the current fiscal.
- This dividend of Rs 68000 will be the highest receipt for the government from RBI in a single financial year. RBI follows a July-June financial year and usually distributes the dividend in August after annual accounts are finalised.
- RBI is providing the interim dividend for the second consecutive year. The RBI had paid Rs 10,000 crore interim dividend in March last year taking the total dividend to Rs 40,659 crore for the year.
- The interim dividend by RBI will help the government to meet its revised budget estimates that include an allocation for the first-ever income transfer to farmers and to improve the fiscal position ahead of the general elections in 2019.
- The budget had factored in interim dividend from the RBI. In the revised estimate for FY19, the government budgeted Rs 74,140 crore from dividends and surpluses of RBI, nationalised banks and financial institutions.