RBI provides record breaking dividend of Rs 2.11 lakh crore to the government
The Reserve Bank of India (RBI) will pay a record dividend of Rs 2.1 lakh crore to the government for the fiscal year ended March 31, surpassing budgeted expectations and providing a significant boost to revenue as a new government prepares to take office.
At its meeting on Wednesday, the RBI board approved the transfer of surplus funds, doubling the amount anticipated in the budget. The government had projected a dividend receipt of Rs 1.02 lakh crore from the RBI, public sector banks, and financial institutions in the interim budget for the fiscal year 2024-25, presented in February.
The decision to payout this substantial dividend was made at the 608th meeting of the Central Board of Directors of the Reserve Bank of India under the chairmanship of Governor Shaktikanta Das. The surplus transfer to the central government for the accounting year 2023-24 amounts to Rs 2,10,874 crore, as stated by the RBI.
The RBI board also assessed the global and domestic economic landscape, including potential risks to the growth outlook. Additionally, they reviewed the performance of the Reserve Bank during the last fiscal year, approving its Annual Report and Financial Statements.
Furthermore, the RBI highlighted its adjustment of the Contingent Risk Buffer (CRB) to 6.50 percent for FY 2023-24, reflecting confidence in the economy’s resilience and strength. This decision aligns with the Economic Capital Framework (ECF) established in August 2019, based on recommendations from the Bimal Jalan-headed expert committee.
