Government still hoping for higher dividend payout from RBI
The finance ministry is discussing with RBI the possibility of more government dividend, despite the central bank saying demonetisation had been an unprofitable exercise for it
New Delhi: A day after central bank data revealed that implementation of demonetisation has been an unprofitable exercise for it, the finance ministry said it is still hopeful of a higher dividend from the Reserve Bank of India (RBI) in the current fiscal year.
Briefing reporters, economic affairs secretary Subhash Garg on Thursday said the finance ministry is discussing the matter with RBI.
“RBI has calculated a surplus of Rs44,000 crore, while it has transferred Rs30,000 crore to the government. We are discussing with the RBI whether there is scope for more transfer as we have our budget estimate at Rs58,000 crore,” he said.
RBI on 10 August said it had transferred Rs30,659 crore as dividend to the government for fiscal 2016-17, less than half the amount it had transferred in the previous year (Rs65,876 crore).
In its annual report released on Wednesday, RBI said it had to pay an interest of Rs17,426 crore as it mopped up excess liquidity in the banking system after people rushed to deposit invalidated currency notes at banks and its expenses on printing currency notes more than doubled to Rs7,965 crore compared to the previous year.
After RBI released its annual report revealing that 99% of the demonetized currency has returned to the banking system, Garg, in a series of posts on Twitter, said, “Government’s objectives behind demonetisation fully served. Comprehensive statement issued by DEA explaining the same. Short-term small negative impacts on economic activity have played out fully. Long terms positives will continue to strengthen fundamentals. With RBI disclosing the numbers of returned notes today and the measure having been successfully implemented, debate should be over,” he said.
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