Despite record dividend, RBI and govt may have differences over new norms

Apex bank's Rs 99,122 cr dividend supports the Centre's fiscal rescue plan, obviates need to ramp up borrowings for now

The finance ministry feels the Reserve Bank of India’s dividend cheque of Rs 99,122 crore is just the support needed to finance a stimulus programme for the economy. At the same time, the ministry has frowned upon the new RBI guidelines for appointment of statutory auditors for banks and other financial institutions. It also wants the banking regulator to re-examine if allowing more private banks to offer fee-based government services will hurt the state-owned banks adversely. 

The issues are likely to figure in a committee meeting of the central board of RBI this week.  

Finance ministry, PMO and other ministry