RBI said to have declined additional dividend to government: Report

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Published: January 25, 2018 1:34:46 PM

The Reserve Bank of India (RBI) is understood to have declined government's demand for the additional dividend, ET Now quoting agencies reported. It was earlier reported that the central government has sought Rs 13,000 crore additional dividend from the central bank.

RBI recruitment 2018, RBI recruitment, RBI recruitment NOTIFICATION, RBI JOB NOTIFICATION, RBI VACANCIES, RBI JOBS, rbi.org.in, RBI ASSISTANT JOBS, Reserve Bank of India JOBS, Reserve Bank of India recruitment 2018, Reserve Bank of India JOB NOTIFICATIONThe Reserve Bank of India (RBI) is understood to have declined government’s demand for the additional dividend. (Image: PTI)

The Reserve Bank of India (RBI) is understood to have declined government’s demand for the additional dividend, ET Now quoting agencies reported. It was earlier reported that the central government has sought Rs 13,000 crore additional dividend from the central bank. In August, the RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017 which was less than half the Rs 65,876 crore it had paid in 2015-16.

The government had budgeted for a Rs 58,000 crore dividend from the RBI in its Budget for this fiscal year.  RBI’s profit was about Rs 44,000 crore, of which Rs 30,000 crore has been distributed and Rs 13,000 crore it retained towards risks and reserves.

The RBI is entitled to pay a dividend to the government of India under Section 47 (Allocation of Surplus Profits) of the Reserve Bank of India Act, 1934. The Reserve Bank had halved its dividend payout to the government to Rs 30,659 crore for the fiscal ended June 2017, citing lower surplus. The government had pegged Rs 74,901.25 crore as a dividend in FY17. The government was earlier stated to be expecting Rs 58,000 crore in dividend from the RBI in FY18, according to PTI.

Before every annual Budget announcement, the government and the RBI discuss the amount to be transferred as dividend every year. The government puts forward a number, and the RBI, on the basis of its profits and funds needed to be kept aside for contingencies, puts forward a number. After calculations, the RBI provides an indicative figure, which the government puts under the ‘non-tax revenue’ head in the receipts budget.

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