Centre to receive around 100 thousand crore in RBI Dividend
India’s government is likely going to receive the biggest windfall in the form of dividends from the RBI in its history. It is on this basis that information being provided to the nation through various media suggests that the central bank will transfer Rs.1 Lakh crore rupees to the government treasury.
Going by the current circumstances, the fact that the RBI can afford to disburse such a huge amount reflects the prowess of the central bank which has vowed to support the government financially. It emanates from the RBI’s surplus which is vested from the years’ earnings through proper and sound management of monetary policies as well as the nation’s financial system. In this way, the RBI, using money inflows to buy back its own paper, recycles a part of its own assets and allows the government to provide the necessary funding for development projects, social programs, other infrastructure, and welfare projects at the time of continued crisis to aid in the recovery process.
This decision of RBI to pay such a hefty amount of dividend proves that there is an evidential correlation between the central bank and the government and both of them enjoy the same authority of managing the financial status of the country.
