Economic Affairs Secretary Subhash Chandra Garg on Wednesday said that the government will seek interim dividend from the Reserve Bank of India, PTI reported. The central bank in the previous fiscal had paid the Centre an interim dividend of Rs 10,000 crore.
Garg said the government is likely to make additional capital infusion in public sector banks, over and above an infusion of Rs 1.35 lakh crore announced by the government for public sector banks in October last year.
The Union Ministry of Finance was likely to seek approval from the Parliament for additional funding for state-run banks on Thursday, said Garg. The proposal will be part of the overall supplementary demand for grants to be laid before the Parliament.
The central government and the Reserve Bank of India have been at loggerheads over the government’s proposal to ease capital and lending norms for certain banks. Last month, a news report had claimed that the government had sought Rs 3.6 lakh crore from the central bank’s reserves. Garg had dismissed the claim.
The RBI last week, in a board meeting headed by headed by new governor Shaktikanta Das, had said it would further examine its governance framework. At a previous meeting on November 19, the central bank’s board of directors decided that an expert panel set up jointly by the government and the central bank will examine the economic capital framework to decide on matters related to the RBI’s surplus reserves.
Garg added that the expert committee on economic capital framework has virtually been finalised. “Hopefully soon, it will be announced,” he said.