The Reserve Bank of India (RBI) has decided to transfer Rs 28,000 crore to the government as interim dividend. This is the second year running when it is making such a transfer.
In 1989, the RBI had transferred just Rs 250 crore. It had been transferring this sum since 1936.
Since the early 1990s, however, the sum has been growing. From 2014, the RBI has been transferring upward of Rs 60,000 crore annually. The exception was 2017, when, thanks to demonetisation in November 2016, it transferred ‘only’ Rs 30,000 crore.
Is this a good thing or bad? There is no consensus. This is
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