RBI Pays Govt Rs 66,000 Crore in Dividend
The Reserve Bank of India on Thursday paid a dividend of nearly Rs 66,000 crore to the government, the highest ever from the central bank in its 80-year history, and 22% more than it paid last year. On a point to point basis, RBI’s dividend payment to the government is up more than four times in as many years.
This payment can help ease the government’s finances, help meet its fiscal deficit targets, provide liquidity to the system so that the rate of interest remains low and also make available funds for the government’s capital expenditure, economists and bond dealers said. The central government’s move is also seen as another proof of its active support to the government’s initiatives to kick start the slowing economy, they said.