RBI Poised To Provide Substantial Dividend To Govt Coffers: Reports
Date
5/20/2024 2:19:23 PM
(MENAFN- KNN India) New Delhi, May 20 (KNN) The Reserve bank of India (RBI) is reportedly planning to transfer a significant dividend payment to the government, potentially amounting to around Rs 1 lakh crore.
Such a transfer would substantially bolster the central government's financial resources, according to a recent report by ET.
In a parallel development last week, the RBI announced a substantial reduction in the government's borrowing through treasury bills, slashing the amount by Rs 60,000 crore.
This decision effectively curtails the funds that the central government would have raised through these short-term debt instruments.
Furthermore, the central bank has implemented measures to facilitate the success of an upcoming debt management operation, in which the government plans to prematurely repay Rs 60,000 crore of its previous borrowings.
These actions are widely perceived as strategic moves to utilise government funds that are currently dormant due to constraints on spending related to the recent electoral process.
These developments also indicate that the central government's financial position may witness considerable improvement in the near future.
The RBI, acting in its capacity as the government's debt manager, is anticipated to formally announce the transfer of its surplus funds to the central government's coffers later in May.
(KNN Bureau)
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