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Business News/ News / India/  RBI approves 87,416 crore dividend payout to GoI for 2022-23
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RBI approves ₹87,416 crore dividend payout to GoI for 2022-23

The government had budgeted a dividend of 480 billion rupees for fiscal 2023 from the central bank, state-run banks and other financial institutions

A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, (REUTERS)Premium
A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, (REUTERS)

The Reserve Bank of India (RBI) board has approved a surplus transfer of 874.16 billion Indian rupees ($10.69 billion) to the government for the fiscal year ended March 31, it said in a statement on Friday.

The government had budgeted a dividend of 480 billion rupees for fiscal 2023 from the central bank, state-run banks and other financial institutions.

In FY22, the RBI transferred 303.07 billion rupees to the government.

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

"The board approved the transfer of 87,416 crore as surplus to the central government for accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6 per cent," RBI said in a statement.

The board also reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments.

The board also discussed the working of RBI during 2022-23 and approved the annual report and accounts of the central bank for the year.

The RBI board also decided to raise the Contingency Risk Buffer to 6% from 5.50% previously.

Analysts had expected the surplus transfer to sharply exceeded the budget estimates on the back of profits made from large dollar sales while higher interest income on treasury holdings locally and abroad were also expected to have helped.

India's benchmark 10-year bond yield, however, jumped 5 basis points to 7.01% as market participants had priced in a surplus transfer of 1 - 1.5 trillion rupees.

The Board also reviewed the global and domestic economic situation and associated challenges in its meeting, including the impact of current global geopolitical developments, the RBI said in its release.

 

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Published: 19 May 2023, 04:29 PM IST
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