Shaktikanta Das says not aware of govt demand for interim dividend

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Published: October 4, 2019 1:36:29 PM

As per media reports, the government might seek an interim dividend of about Rs 30,000 crore from the RBI towards the end of the financial year so that it could meet the fiscal deficit target of 3.3 percent.

Last month, the RBI central board had given its nod to transfer Rs 1,76,051 crore to the government from its surpluses as per the Bimal Jalan panel report. (File photo)Last month, the RBI central board had given its nod to transfer Rs 1,76,051 crore to the government from its surpluses as per the Bimal Jalan panel report. (File photo)

Governor Shaktikanta Das on Friday scotched media reports that the government might seek an interim dividend of Rs 30,000 crore from the central bank to meet its revenue shortfall after the massive tax cuts. As per media reports, the government might seek an interim dividend of about Rs 30,000 crore from the RBI towards the end of the financial year so that it could meet the fiscal deficit target of 3.3 percent.

“I have also seen it in the media. That apart I am not aware of any such demand from the government for payment of interim dividend,” Das told reporters after the announcement of fourth bi-monthly monetary policy. During 2017-18, the government received Rs 10,000 crore as interim dividend from the central bank.

Last month, the RBI central board had given its nod to transfer Rs 1,76,051 crore to the government from its surpluses as per the Bimal Jalan panel report. The amount comprised Rs 1,23,414 crore of surpluses for FY19 and Rs 52,637 crore of excess provisions identified as per the revised economic capital framework (ECF) for the central bank.

Of the net income of Rs 1,23,414 crore for FY19, RBI had already transferred Rs 28,000 crore to the government as interim dividend in March 2019. The Jalan panel also said after the surplus transfer, there would not be any interim dividend.

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