RBI reportedly declines government's demand for additional dividend: Agencies

The Reserve Bank of India is said to have declined Central government's demand for additional dividend, ET Now quoted agencies as saying.

The government had asked the RBI to pay an additional dividend of Rs 13,000 crore. The RBI transferred dividend to the tune of Rs 30,659 crore to the government for FY2016-17, which is half of what it paid to the government in the previous fiscal.

The reduction in dividend for FY2016-17 was account of higher cost of printing new currency notes and other costs associated with demonetisation like mopping up excess liquidity from the system, experts believe.


Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers.