North India Statesman
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Mumbai: The Reserve Bank of India (RBI) can pay a huge dividend of Rs 2.50 lakh crore to the government for the end financial year 2024-25. In FY 2023-24, the Reserve Bank gave Rs 2.10 lakh crore as a dividend to the government.
A banker said that in view of the dividend income of Rs 2.50 lakh crore in the last financial year, the government will see a decrease in the amount of borrowing from the market in the current financial year. Sources in the Reserve Bank said that the balance sheet of the Reserve Bank has strengthened in the last financial year.
In the current financial year budget, the government has hoped to get Rs 2.20 lakh crore from the Reserve Bank. Additional revenue relief from the Reserve Bank will be a matter of relief, as the government is planning to spend more to support the country’s economy.
It is believed that the Reserve Bank has increased its cash flow due to increase in interest income from dollar sales and providing funds to provide liquidity to banks. The Reserve Bank will announce a dividend amount in late May. Payment of more than Rs 2 lakh crore last year surprised many people. An economist said that high income through dividends helps the government to reduce the fiscal deficit.
The financial year of the Reserve Bank, earlier from July to June, has been reduced from April to March for the last few years. Sources also informed that the recommendations of Bimal Jalan Committee are being taken into consideration while transferring the additional amount. According to the recommendations of the Jalan Committee, the Reserve Bank is required to maintain 5.50 to 6.50 percent of its balance sheet to meet casual requirements.
This amount should be maintained to deal with any situation arising due to depreciation or exchange rate policy related to exchange rate policy.
