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Reserve Bank of India. (Reuters)
Reserve Bank of India. (Reuters)

FinMin seeks transfer of 27,380 cr from RBI retained towards risks, reserves

  • The RBI had retained 13,190 crore towards risks and reserves during 2016-17
  • Earlier this month, Economic Affairs Secretary had said the government expects 28,000 crore as interim dividend

The finance ministry has sought from the Reserve Bank of India (RBI) 27,380 crore that was withheld by the central bank towards risks and reserves in the previous years, said sources.

The RBI had retained 13,190 crore towards risks and reserves during 2016-17. It increased to 14,190 crore in 2017-18. Together, retained amount is 27,380 crore.

The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said.

Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects 28,000 crore from the RBI as interim dividend during the current fiscal.

The RBI, which follows July-June financial year, has already transferred 40,000 crore in the current fiscal.

If the central board of the RBI approves transfer of 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be 68,000 crore in 2018-19.

According to sources, the government expects 69,000 crore dividend in the next financial year.

The government has projected to mobilise 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20.

After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which the provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government, as per the RBI Act.

This story has been published from a wire agency feed without modifications to the text.

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