Reserve Bank of India (RBI) on Monday announced Rs 28,000 crore transfer as surplus to the Modi government.
Reserve Bank of India (RBI) on Monday announced Rs 28,000 crore transfer as surplus to the Modi government. The dividend transfer is likely to help the government meet its revised fiscal deficit target of 3.4 percent of GDP for 2018-19. RBI has already transferred Rs 40,000 crore in the current year. The dividend announced is for the half year ended December 31, 2008, RBI said after the central board meet.
“Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of Rs 28,000 crore to the central government for the half-year ended December 31, 2018, RBI said in a statement.
It is the second consecutive year that the central bank has transferred an interim dividend. The surplus has been declared based on the Economic Capital Framework, RBI noted. The surplus will be adjusted against the final account, it also said. The surplus has been declared after limited audit review, RBI added.
Earlier in the day Finance Minister Arun Jaitley had addressed the customary post-budget meeting of the central board of the Reserve Bank. The central bank independently decides dividend and specifics are not decided in the board meeting, Finance Minister Arun Jaitley had said when asked about the likely interim dividend from RBI.