RBI to pay Rs 87,416-crore dividend to govt for FY23

Reserve Bank of India's board on Friday approved transfer of Rs 87,416 crore as dividend to government for FY23. 

The decision was taken at the 602nd meeting of the Central Board of Directors of Reserve Bank of India held on Friday at Mumbai under the Chairmanship of Governor Shaktikanta Das.

"The Board in its meeting reviewed the global and domestic economic situation and associated challenges including the impact of current global geopolitical developments. The Board approved the transfer of Rs 87,416 crore as surplus to the Central Government for the accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6%," said RBI in a statement.

In February, the government said it expects 17 per cent higher dividend at Rs 48,000 crore from the Reserve Bank of India (RBI), public sector banks and financial institutions in 2023-24.

In the financial year ending March 2023, government aimed to garner Rs 40,953 crore from RBI and public sector financial institutions. 

It is to be noted that RBI approved a dividend payment of Rs 30,307 crore to the government post its board meeting in May 2022.

As per the Budget document, dividends from public sector enterprises and other investments have been pegged at Rs 43,000 crore for FY24 as well.

As per the Revised Estimate for FY23, the dividend from public sector enterprises and other investments was higher at Rs 43,000 crore from the Budget Estimate of Rs 40,000 crore.

Total dividend collection of the next financial year would be Rs 1,15,820 crore as against the RE of Rs 1,08,592 crore, as per the RE of 2022-23.

A higher dividend payout is expected to help Prime Minister Narendra Modi's government to meet its target of lowering the fiscal deficit to 5.9% of gross domestic product in the current financial year from 6.4% a year ago.