Reserve Bank of India examines feasibility of policy on dividend to govt

Centre believes there will be green signal for amending the law to enable the policy

The Reserve Bank of India (RBI) is studying the feasibility of a dividend policy for itself. One which will require it to transfer a pre-determined portion of the surplus it earns to the government.

The latter, on its part, seems confident that amendments to the RBI Act, which will provide legal backing for such a policy, will be placed for Parliament’s consideration in the winter session.

“RBI will study examples of central banks of other countries which pay a set dividend to their governments. Surpluses paid in the past, as well as the recommendations of the Malegam committee, will also