Home » BUSINESS » Centre may push for Rs 30K crore interim dividend from RBI

Centre may push for Rs 30K crore interim dividend from RBI

Reserve Bank

New Delhi: The Finance Ministry is likely to push for Rs 25,000-30,000 crore interim dividend from RBI, for the third time in a row, to check slippages in the fiscal deficit of 3.3 percent in 2019-20.

The central bank and government may touch upon the issue when Finance Minister Nirmala Sitharaman will meet RBI Governor Shaktikanta Das at the post Budget Vision customary meeting.

The government has a budget estimate of Rs 90,000 crore dividend from RBI in FY20. RBI follows a fiscal of July-June. The interim dividend of the RBI’s total dividend for 2019-20 (July-June) can help the government check 3.3 percent fiscal deficit target slippage.

In the past RBI has paid a total Rs 38,000 crore as an interim dividend (Rs 28,000 crore in FY19 and Rs 10,000 crore in FY18).

“If the RBI board recommends, then it will be the third time when the interim payout will be given to the government,” said sources.

The central bank had paid Rs 28,000 crore as interim dividend from its 2018-19 fiscal accounts (July-June) in February, which helped the government contain deficit at 3.4 percent in the last fiscal.

The Reserve Bank follows July-June financial year and usually distributes the dividend in August after annual accounts are finalized and interim dividends if any, they are given around February to the government. (IANS)

Also Read: RBI curbs on Bengaluru-based private bank from doing business

Also Watch: Vivekananda Civil Service Academy inaugurated on Monday in Guwahati