Categories: Business

RBI approves dividend of Rs 57000 crore to government

Photo: FILE

RBI approves dividend of Rs 57000 crore to government

Mumbai, 14 August (IANS) | The Reserve Bank of India (RBI) on Friday approved transferring surplus amount of Rs 57,128 crore to the central government for the fiscal year 2020. This decision was taken in the 584th meeting held through video conference of the Central Board headed by RBI Governor Shaktikanta Das.

The board reviewed the current economic situation at the meeting. The board also reviewed the monetary, regulatory and other measures taken by the RBI to mitigate the global and domestic challenges as well as the economic impact of the Kovid-19 epidemic. The board has decided to allow the central government to transfer a surplus amount of Rs 57,128 crore for the fiscal year 2020 and maintain the emergency risk reserves at 5.5 per cent.

The Center is getting this amount at a time when the government's fiscal deficit is reaching a record high due to the Corona crisis. Due to the Corona crisis, the government's income has been under constant pressure, while all sectors are expecting a relief package to bring the economy back on track. The income of the Reserve Bank comes from the interest received from the purchase and sale of government security, interest on loans given to banks, etc. According to the Reserve Bank Act 1934, any profit earned through business has to be given to the Center.

This post was published on August 14, 2020 6:50 pm

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