RBI likely to give extra dividend to government for FY18
ETMarkets.com|
Updated: Jan 05, 2018, 03.52 PM IST
NEW DELHI: The Reserve Bank of India (RBI) is likely to give extra dividend to the government for the ongoing financial year, media reports said.
ET had in December reported that the government was looking to ask the RBI to transfer an additional Rs 13,000 crore lying with the central bank, as it looked to build a corpus to recapitalise public sector banks (PSBs).
RBI has transferred Rs 30,659 crore to the government for the accounting year 2016-17. This was 99.99 per cent of the RBI's gross income less total expenditure for 12 months ending June 30.
RBI's annual account closes every June.
The transferred amount this year was less than half the Rs 65,876 crore that RBI had paid in 2015-16 to the government, ET reported, as its expenditure doubled due to a 135 per cent rise in cost for printing notes and nearly 14-times higher provisions for transfer to contingency funds, ET reported.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers.
ET had in December reported that the government was looking to ask the RBI to transfer an additional Rs 13,000 crore lying with the central bank, as it looked to build a corpus to recapitalise public sector banks (PSBs).
RBI has transferred Rs 30,659 crore to the government for the accounting year 2016-17. This was 99.99 per cent of the RBI's gross income less total expenditure for 12 months ending June 30.
RBI's annual account closes every June.
The transferred amount this year was less than half the Rs 65,876 crore that RBI had paid in 2015-16 to the government, ET reported, as its expenditure doubled due to a 135 per cent rise in cost for printing notes and nearly 14-times higher provisions for transfer to contingency funds, ET reported.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers.
