Govt gets a Rs 2.1 lakh cr cheque from RBI

The central government got big surprise from the Reserve Bank on Wednesday. The central bank  approved a dividend payout of Rs 2.11 lakh crore to the central government for 2023-24. This is the highest dividend ever paid to government by RBI.

The previous high was Rs 1,76 lakh crore in 2018-19. Last year it had paid Rs 87,416 crore.

The decision on the dividend was taken at 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 said in a statement.

The windfall gain from RBI is expected to ease the fiscal deficit position of the government. The central government aims to contain the fiscal deficit to Rs 17.34 lakh crore or 5.1% of the GDP, during the current financial year.

The government had budgeted only for Rs 1.02 lakh crore from RBI and other government financial institutions.

The RBI board also reviewed the global and domestic economic scenario, including risks to the growth outlook.

The Board discussed the working of the Reserve Bank during 2023-24 and approved its Annual Report and Financial Statements for the last fiscal.

“With the revival in economic growth in FY 2022-23, the Contingent Risk Buffer was increased to 6.00 per cent. As the economy remains robust and resilient, the Board has decided to increase the CRB to 6.50 per cent for FY 2023-24,” the central bank added.