Reserve Bank of India Dividend: Reserve Bank of India to transfer Rs 87,416 crore as dividend to Centre for FY23

Reserve Bank of India Dividend: Reserve Bank of India to transfer Rs 87,416 crore as dividend to Centre for FY23


The Reserve Bank of India’s board Friday approved the transfer of Rs 87,416 crore as surplus to the Central government. It also decided to raise the contingency risk buffer to 6% from 5.5%, the central bank said in a press release.

In FY22, the RBI transferred Rs 30,307 crore to the government.

“The Board in its meeting reviewed the global and domestic economic situation and associated challenges including the impact of current global geopolitical developments,” RBI’s release said.

The Shaktikanta Das-led board discussed the working of the Reserve Bank during the year April 2022 – March 2023 and approved the Annual Report and accounts of the Reserve Bank for the accounting year 2022-23.

India’s benchmark 10-year bond yield, however, jumped 5 basis points to 7.01% as market participants had priced in a surplus transfer of Rs 1 – 1.5 lakh crore.

ET earlier in May had reported that the central government is likely to make windfall gains by way of annual dividend receipts from the RBI, which is estimated to have garnered substantial profits in foreign-currency trading and by lending to the local banking system after the rise in policy rates and liquidity drainage prompted high-street lenders to borrow more from the RBI.

The Budget has estimated receipts of ₹48,000 crore in FY24 by way of total dividends from public sector banks and the RBI.In the previous financial year, the government aimed to garner Rs 40,953 crore from RBI and public sector financial institutions, much lower compared to the Budget Estimate of Rs 73,948 crore for FY23.

As per the Budget document, dividends from public sector enterprises and other investments have been pegged at Rs 43,000 crore for FY24 as well.

As per the Revised Estimate for FY23, the dividend from public sector enterprises and other investments was higher at Rs 43,000 crore from the Budget Estimate of Rs 40,000 crore.



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