Economy News

Reserve Bank of India Dividend: The Reserve Bank of India transfers Rs 87,416,000,000 as a dividend to the Center for FY23 – Mintpaisa

The board of the Reserve Bank of India on Friday approved the transfer of Rs 87,416 crore as surplus to the central government. It also decided to raise the emergency risk buffer to 6% from 5.5%, the central bank said in a press release.

In FY22, the RBI transferred Rs 30,307 crore to the government.

“During its meeting, the Board of Directors reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments,” the RBI statement read.

The Board of Directors headed by Shaktikanta Das discussed the operation of the Reserve Bank during the year from April 2022 to March 2023 and approved the annual report and accounts of the Reserve Bank for the accounting year 2022-23.

India’s benchmark 10-year bond yield, however, jumped 5 basis points to 7.01% as market participants priced in a surplus transfer of Rs 1 to 1.5 lakh crore.

ET earlier in May had signaled that the central government was likely to make windfall gains from annual dividends from the RBI, which would have reaped substantial profits in foreign exchange trading and lending to the local banking system after the rise. Higher policy rates and the draining of liquidity prompted major lenders to borrow more from the RBI.

The budget estimated receipts of ₹48,000 crore in FY24 from total dividends from public sector banks and the RBI. the budget estimate of Rs 73,948 crore for FY23.

According to the budget document, dividends from public sector enterprises and other investments were also set at Rs 43,000 crore for FY24.

According to the revised estimate for FY23, the dividend from public sector enterprises and other investments was higher at Rs 43,000 crore compared to the budget estimate of Rs 40,000 crore.

.

Source link

Leave a Reply

error: Content is protected !!