scorecardRBI approves Rs 87,416 cr dividend payout to the government for 2022-23
  1. Home
  2. finance
  3. news
  4. RBI approves Rs 87,416 cr dividend payout to the government for 2022-23

RBI approves Rs 87,416 cr dividend payout to the government for 2022-23

RBI approves Rs 87,416 cr dividend payout to the government for 2022-23
Finance2 min read
Source: IANS
Mumbai, The Reserve Bank on Friday approved Rs 87,416 crore dividend payout to the central government for 2022-23, nearly triple of what it paid in the previous year. The dividend payout was Rs 30,307 crore for accounting year 2021-22.

The decision was taken at the 602nd meeting of the Central Board of Directors of Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.

"The board approved the transfer of Rs 87,416 crore as surplus to the central government for accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6 per cent," RBI said in a statement.

The board also reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments.

The board also discussed the working of RBI during 2022-23 and approved the annual report and accounts of the central bank for the year.

Madan Sabnavis, chief economist of Bank of Baroda said that this surplus transfer will come in very handy and ensure that the government managed it fiscal numbers with relative ease given that there are question marks on the divestment programme.

"The Budget had looked at a number of Rs 48,000 crore as dividend from banks and RBI. RBI has overshot this number with the transfer of Rs 87,000 cr. This was enabled by higher earnings on sale of forex during the year, better returns on forex investments in US treasuries (though value of bonds would have fallen which has to be charged to the contingency reserve), revaluation of forex assets and adjustments in reserves as per the Bimal Jalan Committee recommendations. The RBI would have had higher pay-outs due to the higher SDF rates with the system being in surplus all through the year," Sabnavis said.

According to him, public sector banks have also reported very good profits and announced dividend, there will be higher flows of dividends from this source too. Add to this the possible higher dividend payments by the oil marketing companies and the situation appears quite comfortable from a market perspective as this will not lead to higher market borrowings.

(With inputs from PTI)

READ MORE ARTICLES ON




Advertisement