The option of interim dividend from the Reserve Bank of India during the financial year is open and decision in this regard may be taken later this year, Economic Affairs Secretary S C Garg said today. Yesterday, the RBI board decided to pay Rs 50,000 crore as dividend to the government for the financial year ended June 2018. RBI follows July-June fiscal year.
Explaining the break up of dividend announced by RBI, Garg said, “You declare dividend after year closes. RBI financial year closes on June 30, now they are finalising accounts and they declared Rs 50,000 crore as dividend. Rs 10,000 crore (as interim dividend) was received last year (FY18), Rs 40,000 crore will come (FY19).”
When asked if there is scope for interim dividend, he said the option remains open. “Like we did last year there may be interim dividend this year. The review could happen later may be December, ” he said. He said the RBI dividend announcement is close to estimates.
As per the Budget Estimate, the government projected to collect Rs 54,817.25 crore as dividend or Surplus of Reserve Bank of India, Nationalised Banks and Financial Institutions. The government realised Rs 51,623.24 crore under this head in the previous fiscal.
It is to be noted that the RBI transferred a surplus of Rs 30,659 crore as dividend to the government for the year ended June 30, 2017, which was less than half of what it paid in the previous year (Rs 65,876 crore). The surplus payout in June 2017 year was low on account of expenses incurred on printing of new currency notes following demonetisation effected on November 9, 2016.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others.
Source: Financial Express