Govt gets Rs 10,320cr as dividend from RBI

The government which is always short of cash and perennially borrowing from the market has once again dipped into the kitty of RBI for a huge dividend payout. For the third year in succession, the central bank has come to Government’s rescue by announcing its decision to transfer a hefty Rs 10,320 crore as dividend to the exchequer this year out of its surplus profit.

This is a rise of 10.37 per cent over the dividend payout of Rs 9,350 crore last year. According to bankers, this dividend will be a major source of income for the government and will increase its cash flow in the coming weeks. The inflows into the government’s coffers would bring down its short-term balances with the central bank under the ways and means advances facility. “Government’s plan to raise Rs 12,000 crore from sales of shares in state-run firms in the current year may remain a dream. RBI dividend will boost government finances,” said a money market expert.