Govt gets fiscal deficit cushion, RBI to pay Rs 500-bn dividend for FY18

The RBI had last year transferred a surplus of Rs 306 billion as dividend to the government for the year ended June 30, 2017

The Reserve Bank of India (RBI) will pay Rs 500 billion dividend to the government for its financial year ended June 2018, giving it a cushion to manage the fiscal deficit. However, it is not clear if this includes the interim dividend of Rs 100 billion the central bank paid the government in March 2018.

“The central board of directoRs of the RBI, at its meeting on August 8, approved the transfer of the surplus, amounting to Rs 500 billion for the year ended June 30, 2018, to the Government of India,” the central bank said in a statement. The