Mumbai: The Reserve Bank of India Friday approved a Rs 87,416 crore-dividend payout to the central government for 2022-23, nearly triple of what it paid in the previous year.
The dividend payout is significantly higher than the amount estimated in the Union Budget 2023-24 from the central bank and state-owned financial institutions.
The government was expecting Rs 48,000 crore from the RBI, public sector banks and financial institutions in the current fiscal.
The dividend payout by the RBI was Rs 30,307 crore for accounting year 2021-22.
With public banks posting record profits of over Rs 1 lakh crore in fiscal 2022-23, the government’s earnings from them too is likely to be higher.
For 2021-22 fiscal, the government earned Rs 40,953 crore from the RBI and public sector financial institutions. It was much lower compared to Budget Estimate of Rs 73,948 crore for 2022-23.
The decision on Rs 87,416 crore-dividend payout was taken at the 602nd meeting of the Central Board of Directors of the RBI held under the Chairmanship of Governor Shaktikanta Das.
“The board approved the transfer of Rs 87,416 crore as surplus to the central government for the accounting year 2022-23 while deciding to keep the Contingency Risk Buffer at 6 per cent,” the RBI said in a statement.
The contingency risk buffer, which is based on the recommendations of the Bimal Jalan Committee report, was 5.50 per cent for accounting year 2021-22. The panel had prescribed a Contingency Risk Buffer range of 6.5 per cent to 5.5 per cent.
Further, the RBI said the board reviewed the global and domestic economic situation and associated challenges including the impact of current global geopolitical developments.
It also discussed the working of the RBI during the year April 2022 – March 2023 and approved the annual report and accounts for the accounting year 2022-23.
The meeting was attended by deputy governors Mahesh Kumar Jain, Michael Debabrata Patra, M Rajeshwar Rao, T Rabi Sankar and other directors of the central board.
Directors on the board are Satish K Marathe, Revathy Iyer, Sachin Chaturvedi, Anand Gopal Mahindra, Pankaj Ramanbhai Patel and Ravindra H Dholakia.
Ajay Seth, Secretary, Department of Economic Affairs also attended the meeting.
PTI