Published 19:40 IST, July 5th 2019
Government expects Rs 90,000 crore dividend from RBI in Financial Year 2020
Finance Secretary Subhash Chandra Garg on Friday said the government expects Rs 90,000 crore as dividend from the RBI in the current fiscal. This is a 32 percent jump from the previous fiscal when the central bank paid Rs 68,000 crore to the government including Rs 28,000 crore as interim dividend. This was the highest receipt from the Reserve Bank in a single financial year, exceeding the Rs 65,896 crore received in 2015-16 and Rs 40,659 crore in 2017-18.
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Finance Secretary Subhash Chandra Garg on Friday said government expects Rs 90,000 crore as dividend from RBI in current fiscal.
This is a 32 percent jump from previous fiscal when central bank paid Rs 68,000 crore to government including Rs 28,000 crore as interim dividend. This was highest receipt from Reserve Bank in a single financial year, exceeding Rs 65,896 crore received in 2015-16 and Rs 40,659 crore in 2017-18.
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" Reserve Bank dividend will come after annual meeting. government has estimated about Rs 90,000 crore as dividend from RBI," he said.
Reserve Bank follows July-June financial year and usually distributes dividend in August after annual accounts are finalized. Union Budget 2019-20 has pegged dividend or surplus of RBI, nationalized banks and financial institutions at Rs 1.06 lakh crore up from Rs 74,140.37 crore realized in previous fiscal. Meanwhile, RBI has set up a panel under former Goverr Bimal Jalan to look into size of capital reserves that central bank should hold.
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six-member panel, under former RBI Goverr Bimal Jalan, was appointed on December 26, 2018, to review ecomic capital framework (ECF) for Reserve Bank after Finance Ministry wanted it to follow global best practices and transfer more surplus to government. or key members of panel include Rakesh Mohan, former deputy goverr of RBI as vice-chairman, finance secretary Subhash Chandra Garg, RBI deputy goverr N S Vishwanathan, and two RBI central board members -- Bharat Doshi and Sudhir Mank.
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government and RBI under its previous goverr Urjit Patel h been at loggerhes over Rs 9.6 lakh crore surplus capital with central bank.
Finance Ministry was of view that buffer of 28 percent of gross assets maintained by central bank is well above global rm of around 14 percent. Following this, RBI board in its meeting on vember 19, 2018, decided to constitute a panel to examine Ecomic Capital Framework.
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In past, issue of ideal size of RBI reserves was examined by three committees -- V Subrahmanyam in 1997, Usha Thorat in 2004 and YH Malegam in 2013.
19:00 IST, July 5th 2019