RBI to pay government Rs 50,000 crore as dividend for financial year ending June 2018
The central bank had paid Rs 30,659 crore, about 63% lesser, in 2017.
The Reserve Bank of India on Wednesday said it will pay Rs 50,000 crore as dividend to the government in line with the Union Budget provisions.
“The Central Board of Directors of the Reserve Bank of India, at its meeting held on August 8, 2018, approved the transfer of surplus amounting to Rs 500 billion for the year ended June 30, 2018, to the Government of India,” the RBI said in a statement.
The RBI, which follows a July to June financial year, has paid about 63% higher dividend than the previous year, 2016-’17. It had paid Rs 30,659 crore as dividend for the fiscal ending June 2017, less than half of the Rs 65,876 crore it had paid the year before. The dividend payout was low due to expenses incurred on printing of new currency notes following the demonetisation of Rs 500 and Rs 1,000 on November 9, 2016, PTI reported.
In March, the RBI paid an interim dividend of Rs 10,000 crore to support the government’s fiscal position.
The government projected to collect Rs 54,817.25 crore as dividend or surplus of Reserve Bank of India, nationalised banks and financial institutions, according to the budget estimate.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad debts, depreciation in assets and contribution to staff and superannuation fund among others.