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News on Governance 6 ArdorComm Media Group RBI Approves ₹2.11 Lakh Crore Dividend Payout to Government for 2023-24
News on Governance 6 ArdorComm Media Group RBI Approves ₹2.11 Lakh Crore Dividend Payout to Government for 2023-24

RBI Approves ₹2.11 Lakh Crore Dividend Payout to Government for 2023-24

-By ArdorComm News Network

The Reserve Bank of India (RBI) has approved a substantial ₹2.11 lakh crore dividend payout to the central government for the financial year 2023-24. This amount is more than double the ₹87,416 crore paid for the previous financial year, 2022-23. The decision was made during the 608th meeting of the Central Board of Directors of the RBI, chaired by Governor Shaktikanta Das on May 22.

In a statement, the RBI announced, “The Board…approved the transfer of ₹2,10,874 crore as surplus to the Central Government for the accounting year 2023-24.”

This significant dividend payout surpasses analysts’ expectations, who had anticipated a surplus transfer between 750 billion rupees to 1.2 trillion rupees, driven by strong foreign exchange earnings.

Additionally, the RBI has increased the Contingent Risk Buffer (CRB) to 6.5% for FY 2023-24, up from 6% in the previous financial year. The CRB is a financial safeguard against potential risks, and its increase reflects the RBI’s confidence in the economy’s resilience and robustness.

The large dividend payout is expected to provide a substantial boost to the central government’s finances, aiding in fiscal management and potentially funding various public expenditure programs. This move by the RBI underscores its strong financial performance and the positive outlook for India’s economic growth.

The enhanced dividend payout comes at a critical time, supporting the government’s efforts to manage its fiscal deficit and fund developmental initiatives. The decision reflects the RBI’s commitment to maintaining a robust financial position while supporting the government’s economic agenda.

 

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