RBI to transfer Rs 28,000 cr interim surplus to government

RBI to transfer Rs 28,000 cr interim sur...

The Reserve Bank of India (RBI) in its board meeting on February 18 decided to transfer Rs 28,000 crore as interim dividend to the government for the period of July to December 2018.

"Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central government for the half-year ended December 31, 2018," the RBI said in its statement.

The interim surplus has been decided after a limited audit review and after applying the Economic Capital Framework.

This is the second successive year that RBI will transfer interim surplus to the government.

Transfer of interim surplus would help the government finance various policy initiatives that were announced during interim Budget and will help to manage its fiscal position.

Government had announced key populous decisions during the Budget presentation, ahead of Lok Sabha elections in May 2019, including direct annual income transfer of Rs 6,000 to farmers in three equal instalments and exemption of income tax for individuals with taxable income less than Rs 5 lakh per annum.

Experts believe that Budget announcements and transfer of interim dividend will lead to enhanced liquidity in the system.

Earlier, Finance Minister Arun Jaitley addressed the post-Budget meeting of the Central Board and discussed various "issues related to fiscal policy decisions taken by the government".

With this surplus transfer, the total dividend payout by the RBI to the government in FY19 stands at Rs 68,000 crore. The RBI follows the July-June fiscal calendar.

According to a written reply by Finance Ministry in Rajya Sabha on February 12, the RBI transferred Rs 40,000 crore in August 2018 as excess surplus to the government. With this amount, the total transfer has reached Rs 68,000 crore for 2018-19.


PostedOn: 18 Feb 2019 Total Views: 217




Sensex drops over 100 points to slip bel...

Sensex drops over 100 points to slip below 37,000 ...

Domestic equity benchmark BSE #Sensex dropped over 100 points to fall below the 37,000 mark on Thursday tracking weak cues from other Asian markets amid concerns of a looming global economic slowdown. The 30-share index was trading 127.32 points, or 0.34 per cent, lower at 36,933.05. The broader Nif...

22 Aug 2019

RBI cuts key rate by 25 bps, changes neu...

RBI cuts key rate by 25 bps, changes neutral stanc...

The Reserve Bank of India (RBI) cutkey lending rates by another 25 basis points to 5.75 per cent on Thursday. In the second bi-monthly monetary policy of 2019-20 under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut. The Monetary Policy Committe...

06 Jun 2019

India projected to grow at 7.5 per cent ...

India projected to grow at 7.5 per cent for three ...

India's economy is projected to grow at 7.5 per cent in the next three years, supported by robust investment and private consumption, the World Bank has forecast, in some good news to the new Indian government. The bank in its Global Economic Prospects relea-sed on Tuesday said India is estimated to...

06 Jun 2019

BPCL, HPCL take 25 pc stake each in IOC'...

BPCL, HPCL take 25 pc stake each in IOC's Rs 9,000...

Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) have joined in the country's longest LPG pipeline project being laid by state-owned Indian OilCorporation(IOC) to cater to cooking fuel needs of a fourth of the country's population. BPCL and HPCL will take 25 per cent stake ea...

04 Jun 2019

Sensex jumps over 100 points; Nifty near...

Sensex jumps over 100 points; Nifty nears 11,900

The benchmark BSE Sensex jumped over 100 points in early trade on Monday driven by gains in banking stocks amid unabated foreign fund inflow. The 30-share index was trading 128.27 points, or 0.33 per cent, higher at 39,562.99. Similarly, the broader NSE Nifty spurted 28.75 points, or 0.24 per cent, ...

27 May 2019

Indices come down from record highs; Sen...

Indices come down from record highs; Sensex slumps...

Benchmark indices took U-turn from record high levels touched during early trade on Tuesday, with the BSE Sensex tripping nearly 383 points and the NSE Nifty shedding over 119 points as investors hurried up to book profits. An intense selling was seen, barring initial hours, across sectors after mar...

21 May 2019

Sensex vaults 1,422 points as exit polls...

Sensex vaults 1,422 points as exit polls forecast ...

Benchmark Sensex zoomed over 1,422 points and the NSE Nifty surged 421 points on Monday after most exit polls showed that the Narendra Modi-led NDA is returning to power with a thumping majority in the Lok Sabha elections. The 30-share index ended 1,421.90 points, or 3.75 per cent, higher at 39,352....

20 May 2019

Sensex jumps over 800 points as exit pol...

Sensex jumps over 800 points as exit polls suggest...

The exit poll results, which have showed a winning of BJP-led NDA in the 17thLok Sabha elections, are expected to have positive impact on the Stock market. Exit poll trends will set the tone for the equity markets in the initial part of the week, while the final outcome of the general elections on M...

20 May 2019