The Reserve Bank of India (RBI) is likely to transfer about Rs 57,000 crore of its surpluses to the government for the fiscal 2019-20, against Rs 1.76 trillion of transfer it did last year, television channel ET Now said citing sources.
Business Standard could not independently verify the news, but the central bank is expected to officially declare the much anticipated transfer amount in an hour or two.
In financial year 2018-19, Rs 1,23,414 crore of its surplus to the central government for the fiscal year 2018-19 or FY19 (July to June), and an additional Rs 52,637 crore of excess provisions as recommended by the Bimal Jalan committee on Economic Capital Framework (ECF). The surplus is commonly called ‘dividend’. In 2018-19, the RBI had transferred Rs 65,896 crore, in 2017-18 Rs 50,000 crore, while in 2016-17, the dividend transfer was just Rs 30,659 crore because of demonetisation.
For the financial year 2019-20, the government had budgeted for Rs 60,000 crore as dividend to bridge its fiscal deficit.
The central bank’s financial year runs from July to June, but from next year, the financial year will get aligned with that of the government and will end in March.
The central bank’s board met on Friday to review RBI’s balance sheet, the surplus transfer is part of that review process.