Reserve Bank of India to pay Rs 57,128 crore as surplus to govt for 2019-20

The Reserve Bank of India will pay Rs 57,128 crore of its surpluse to the government for the financial year 2019-20, against Rs 1.76 lakh crore of transfer it did last year.

This was decided by the central bank’s board led by Governor Shaktikanta Das. RBI makes its annual transfer to the government in August. This surplus is also known as dividend.

For the financial year 2019-20, the government had budgeted for Rs 60,000 crore as RBI dividend to bridge its fiscal deficit.

Last year the RBI had paid Rs 1.76 lakh crore, of which Rs 52,637 was excess provision as recommended by the Bimal Jalan committee on Economic Capital Framework (ECF).

In 2017-18, the central bank had transferred Rs 50,000 crore, higher than Rs 30,659 in 2016-17. That year, demonetization led to higher central bank expenditure and the dividend payout was less.

The RBI’s financial year runs from July to June. From 2021, the financial year will get aligned with that of the government and will end in March.

More to follow