RBI set to give govt Rs 100 billion interim dividend, say sources

The amount has been calculated for the six month through Dec 31, said sources

Government expects to receive Rs 100 billion ($1.5 billion) as interim dividend from the Reserve Bank of India this month, people with knowledge of the matter said.

The amount has been calculated for the six month through Dec 31, the people said asking not to be identified as the information is private. Reserve Bank of India’s financial year runs from July to June.

The Reserve Bank had earlier declined requests from the government for an additional payment after the dividend payout dropped to a five year low. Prime Minister Narendra Modi’s administration is seeking additional funds following a plan to boost spending and shore up support ahead of 2019 federal elections widened the government’s fiscal deficit goal.

Finance Minister spokesman D S Malik was not immediately available for a comment while RBI spokesman Jose Kattoor did not reply to an email seeking comment.