Business Standard

RBI dividend may drop next year

Central bank may done away with provisioning requirements, to enable higher transfer of surplus in the 2017-18 fiscal, analysts say

Liquidity management tool: RBI may have to balance old norms with the new
Premium

Anup Roy Mumbai
The Reserve Bank of India (RBI) may have changed its valuation methodology for its foreign exchange gains generated through interventions, as well as done away with provisioning requirements, to enable higher transfer of surplus in the 2017-18 fiscal, analysts say. 

The methodology change has been long time coming, but could have been completed this year. The Malegam committee on the RBI’s capital adequacy had suggested that the RBI must move away from its methodology to calculate the foreign exchange gains to a weighted average cost-based valuation method. Analysts contend that this may have benefitted the RBI by at least Rs

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 29 2019 | 2:12 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com