Indian two thousand and five hundred rupee banknotes are arranged for a photograph. (Photographer: Dhiraj Singh/Bloomberg)

Option Of Interim Dividend From RBI Still Open, Says Economic Affairs Secretary

The option of interim dividend from the Reserve Bank of India is still open as the government will receive only Rs 40,000 crore as surplus from the central bank this year.

The RBI said on Wednesday it would transfer Rs 50,000 crore as surplus to the government in its financial year ended June 30. RBI follows the July-June cycle as its financial year.

Economic Affairs Secretary Subhash Chandra Garg told reporters today that the RBI had transferred Rs 10,000 crore as interim dividend in March, and the government will receive the remaining amount this fiscal.

“Our estimate has got nothing to do with the RBI’s surplus collection," Garg said, adding that the surplus released by the central bank is close to government’s estimates.

The goverment has budgeted Rs 54,817 crore as dividend from the central bank, nationalised banks and financial institutions for the current financial year.

Garg said that the interim dividend option remains open. “Like we did last year there may be interim dividend this year... the review could happen in December.”

The government is also trying to push the RBI to put in place a policy for surplus distribution, which is likely to have a floor for the dividend.