RBI board likely to take up interim dividend request in Feb 9 board meeting

By: |
Published: February 4, 2019 5:45:30 AM

The Budget has factored in a Rs 68,000-crore dividend from the RBI in the revised estimate for the current fiscal.

Since the government has already received Rs40,000 crore from the RBI this fiscal, the interim dividend is expected to be around Rs 28,000 crore. (Reuters)

The central board of the Reserve Bank of India (RBI) may consider the government’s request for an interim dividend in the customary post-Budget meeting with the finance minister, scheduled for February 9, sources told FE.

The Budget has factored in a Rs 68,000-crore dividend from the RBI in the revised estimate for the current fiscal, economic affairs secretary Subhash Chandra Garg told Rson Saturday.

Since the government has already received Rs40,000 crore from the RBI this fiscal, the interim dividend is expected to be around Rs 28,000 crore.

Interim finance minister Piyush Goyal will address the RBI board meeting, which will be held two days after the next monetary policy review. In the customary post-budget meeting, the finance minister of the day addresses the RBI board and dwells on key issues highlighted in the Budget.

The meeting takes place at a time when the government has missed its fiscal deficit targets for this year and the next by 10 basis points and 30 basis points, respectively, due to the introduction of the PM-Kisan scheme that is aimed at alleviating farm distress. The government’s gross market borrowing target is raised to Rs7.1 lakh crore for the next fiscal.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1All eyes on 1st RBI policy review under Shaktikanta Das; will there be a rate cut?
2Gulf crisis brewing: Cash-strapped Oman may be next blowout after Bahrain
3Arun Jaitley hints at raising Rs 500 a month cash support to farmers in future