InvestorQ : I have heard that RBI has paid some interim dividend to government, is it true?
Neha Samdani made post

I have heard that RBI has paid some interim dividend to government, is it true?

Answer
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Roshni Hegde answered.
1 year ago


Board of RBI (The Reserve Bank of India) has approved an additional 280 billion rupees ($4 billion) as an interim dividend. This declaration of dividend is beyond the ?40,000 crore, which was already paid during the year as surplus from its 2017-18 operations.
RBI said “Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of ?280 billion to the central government for the half-year ended 31 December 2018. "
This move will help Modi’s government partly bridge a budget gap. Also, it will serve in the financial support program conducted for farmers ahead of a general election due by May. In order to allocate cash against the first installment of the $10.5 billion program by March 31, The government is in need of 200 billion rupees. The cash support project for farmers amounts up to 120 million with approx 2 hectares (4.9 acres) and three payments of 2,000 rupees per year.