The Reserve Bank of India (RBI) will pay a record Rs 2.1 lakh crore dividend to the government for the fiscal year ending March 31, significantly exceeding the budgeted expectation.
This substantial transfer will boost government revenue as a new administration takes office.
The RBI board approved the surplus transfer during its meeting on Wednesday, according to an official statement from the central bank.
Initially, the government had projected a receipt of Rs 1.02 lakh crore in dividends from the RBI, public sector banks, and financial institutions in the interim budget for the fiscal year 2024-25, presented in February.
For the fiscal year 2022-23, the RBI transferred Rs 87,416 crore to the Centre, with the previous highest transfer being Rs 1.76 lakh crore in 2018-19.
The decision to approve the record dividend was made during the 608th meeting of the Central Board of Directors of the Reserve Bank of India, chaired by Governor Shaktikanta Das.
"The Board approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24," the RBI stated.
The central government aims to contain the fiscal deficit, the gap between expenditure and revenue, to Rs 17.34 lakh crore (5.1% of GDP) for the current financial year.
The RBI board also reviewed the global and domestic economic scenarios, including potential risks to growth. It discussed the functioning of the Reserve Bank during 2023-24 and approved its Annual Report and Financial Statements for the last fiscal year.
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