Central Bank to pay Rs 28,000 crore as interim dividend to the Government of India
The RBI will pay Rs 28,000 crore to the government as an interim dividend. It will help the Centre to meet its revised budget which will include an allocation for the first-ever income transfers to the farmers and burnish the fiscal credentials ahead of the general elections.
The central bank follows the July-June financial year and distributes the dividend in August after annual accounts are finalized. The government will get a total of Rs 68,000 crore from the central bank after this interim transfer in the current fiscal. In August 2018, RBI transferred Rs 40,000 crore to the government.
The government was internally informed about the quantum of the interim dividend by the RBI, which was factored in the revised estimates of FY19 presented in the interim budget.
In one of their statement, RBI said that this is their second successive year that the RBI will be transferring an interim surplus. In last fiscal RBI paid Rs 10,000 crore as interim dividend in March, and taking total dividend to Rs 40,659 crore for the year.