RBI Announces Record ₹2.1 Lakh Crore Dividend to Government
In a significant financial boost for the government, the Reserve Bank of India (RBI) will transfer a record ₹2.1 lakh crore as a dividend for the fiscal year ended March 31, 2024. This amount, approved at the 608th meeting of the Central Board of Directors chaired by Governor Shaktikanta Das, is more than double the ₹1.02 lakh crore budgeted by the government and surpasses the previous high of ₹1.76 lakh crore in 2018-19. The surplus transfer aims to help bridge the fiscal deficit, targeted at ₹17.34 lakh crore or 5.1% of GDP for the current financial year.
The RBI attributed the higher dividend to robust economic performance and adjustments in its Contingent Risk Buffer (CRB), which was raised to 6.5% for FY 2023-24 from 6.0% the previous year. This decision aligns with the Economic Capital Framework (ECF) established in 2019, following recommendations from the Bimal Jalan committee. The board also reviewed domestic and global economic conditions, affirming the resilience and growth of the Indian economy.
In its statement, the RBI noted that the enhanced CRB and the resultant surplus distribution reflect improved economic conditions post-COVID-19. The increased dividend is expected to provide substantial revenue support for the newly formed government and aid in maintaining fiscal discipline while fostering economic stability.
Pic Courtesy: google/ images are subject to copyright
