Economy
Surplus Delight: RBI Approves Rs 87,416 Crore Transfer To Centre As Dividend For FY23
RBI Governor Shaktikanta Das.
RBI board approved surplus transfer of Rs 87,416 crore rupees to the central government for the fiscal year ended 31 March 2023, according to a statement released Friday.
For fiscal year 2023, the government had allocated a dividend of 480 billion rupees from the central bank, state-run banks, and other financial institutions, reports the Mint.
In the previous fiscal year, FY22, the Reserve Bank of India (RBI) transferred 303.07 billion rupees to the government.
The decision was made today, at the 602nd meeting of the RBI's Central Board of Directors, chaired by Governor Shaktikanta Das.
"The board approved the transfer of ₹87,416 crore as surplus to the central government for accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6 per cent," the RBI said.
RBI board also raised Contingency Risk Buffer to 6 per cent from 5.50 per cent.
The surplus transfer was expected to exceed budget estimates due to profits from large dollar sales and higher interest income on treasury holdings, according to analysts.
Indian 10-year bond yield rose by 5 basis points to 7.01 per cent due to market participants factoring in a transfer of Rs 1-1.5 trillion.
The RBI stated that the Board analysed the global and domestic economic scenario, including the effect of present geopolitical events.
The RBI provides the government with an annual payout derived from surplus income.
The surplus income comes from investments and valuation changes on foreign exchange holdings, including the dollar. and the RBI also earns fees from printing currency notes, contributing to the payout.
The RBI is required to maintain a Contingency Risk Buffer within the range of 5.5 per cent to 6.5 per cent of its balance sheet.
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