RBI to consider early Rs 28,000 crore interim dividend to government

Payout from the central bank will help partly bridge the government's budget gap in the year ending March after it missed tax collection and asset sale targets

India’s central bank will consider an early transfer of a part of its profit to the government, which is desperate for cash to fund populist pledges ahead of a national election.

The Reserve Bank of India’s central board will decide on the interim dividend, Governor Shaktikanta Das said after a meeting where Finance Minister Arun Jaitley briefed members about the budget and the economic outlook in New Delhi Monday. The board may announce its decision later today. The government has budgeted for Rs 28,000 crore ($4 billion) in interim payment from the RBI.

Any payout from the central bank will