RBI Central Board Meeting: RBI Board Will Decide Interim Dividend, Says Shaktikanta Das
Union Finance Minister Arun Jaitley and RBI Governor Shaktikanta Das during the 575th Central Board Meeting of Reserve Bank of India in New Delhi. (Source: PTI)

RBI Central Board Meeting: RBI Board Will Decide Interim Dividend, Says Shaktikanta Das

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Decision On Interim Dividend May Be Announced Today

The Reserve Bank of India may announce its decision on an interim dividend for the central government, as soon as today, according to a Bloomberg report.

The government has budgeted for Rs 28,000 crore ($4 billion) in interim payment.

In today’s media briefing, Governor Shaktikanta Das had told reporters that a decision on the issues will be taken by the RBI board independently.

Also read: India Central Bank to Consider Early $4 Billion Dividend to Government

Das To Meet Bank Heads On Feb. 21

Shaktikanta Das said he will meet heads of public and private sector banks later this week to discuss transmission of interest rate cut to borrowers.

Speaking to reporters after Finance Minister Arun Jaitley addressed the board of the central bank, Das said transmission of monetary policy decisions is important.

He will meet the CEOs of public and private sector banks on Feb. 21.

Earlier this month, the Reserve Bank cut the benchmark interest rate by 0.25 percent to 6.25 percent.

With inputs from PTI

'Fewer, Mega Banks'

It is important to consolidate India’s banking sector into “fewer, mega banks which are strong”, Jaitley said.

India’s public banks have already gone through two mergers. First, that between State Bank of India and its associate banks, and now a merger between Vijaya Bank, Dena Bank and Bank of Baroda.

India needs fewer and mega banks which are strong because in every sense - from borrowing rates to optimum utilization - the economies of scale as far as banking sector is concerned, are of great help. 
Arun Jaitley, Finance Minister

RBI To Ensure Banks Follow Rules, Says Das

When asked about the irregularities in disclosure by private lender Yes Bank Ltd., Das said that the issue is between the regulator and the regulated entity. The central bank wants to ensure that rules are followed, he added.

India’s central bank reprimanded Yes Bank for selectively revealing a “confidential” report by the regulator that led to a 30 percent surge in the lender’s shares Thursday. The regulator called the disclosure a “deliberate attempt” to mislead the public.

The risk assessment report on Yes Bank prepared by the Reserve Bank of India identified several lapses and regulatory breaches in various areas of functioning, the company said in a stock exchange filing on Friday, citing a letter from the regulator.

Also read: In A Sharp Rebuke, RBI Tells Yes Bank It Misrepresented Risk Assessment Report

RBI Independently Decides Interim Dividend, Says Arun Jaitley

The Reserve Bank of India and the finance ministry discussed the government’s interim budget and the outlook of the Indian economy in today’s meeting, said Finance Minister Arun Jaitley.

No specific decision on interim dividend has been taken in my presence, Jaitley said, addressing the media with RBI Governor Shaktikanta Das.

Das clarified that a decision on the interim dividend will be taken by the RBI board, and not by the RBI Central board.

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