Govt likely to bear Rs 26,000 crore fall in dividend from RBI

Central bank to transfer Rs 30,659 as surplus to the govt in the current financial year

The government’s estimated dividend income from the Reserve Bank of India in the current financial year is likely to be set off by Rs 26,000 crore on account of a fall in seigniorage — the profit made by the government from the difference between the face value of currency and its printing cost — as well as RBI's reverse repo measures to suck excess liquidity post demonetisation, according to SBI group chief economist Soumya Kanti Ghosh.

The Union Budget 2017-18 had projected receipts of Rs 75,000 crore from the RBI, public sector banks and financial institutions, against a little over Rs