The Reserve Bank opened up the treasury to the government and had a track record of paying dividends

RBI Dividend Payment to Govt: The Reserve Bank of India (RBI) has opened up its treasury to the Govt. It has broken all records so far in paying dividend for the financial year 2023-24. The 608th meeting of the central bank chaired by RBI Governor Shaktikanta Das on Wednesday approved a dividend of Rs 2.11 lakh crore to the government for the financial year 2023-24. According to media reports, this is the largest dividend ever paid by the central bank. Earlier, RBI had paid around Rs 1.76 lakh crore to the government as dividend for the financial year 2018-19. The amount recorded in the 2018-19 financial year was more than double the Rs 2.11 lakh crore RBI paid to the government as dividend for the 2023-24 financial year. There is The central bank has paid Rs 87,416 crore as dividend for the financial year 2022-23. Earlier, the RBI had paid a large amount as dividend in the financial year 2018-19. At that time RBI gave a dividend of Rs 1.76 lakh crore to the government. In a statement issued by the RBI, the board of directors has approved the transfer of Rs.2,10,874 crore to the central government as a surplus for the year 2023-24. In the current fiscal year's budget, the government has estimated the total dividend income of RBI and PSUs at Rs 1.02 lakh crore. A higher-than-expected dividend will help the government reduce its fiscal deficit. The central government has set a target of limiting the fiscal deficit, the difference between its expenditure and revenue, to 5.1 percent of gross domestic product (GDP) in the fiscal year 2024-25. The Board of Directors of the RBI also reviewed the growth outlook and the risks associated with the global and domestic economic outlook. Apart from this, the CRB increased to 6.50 percent, the 608th meeting of the Reserve Bank discussed the operations of the Reserve Bank for the financial year 2023-24 and approved its annual report and financial statements for the last financial year. In view of the macroeconomic conditions and the outbreak of the Covid-19 pandemic, the RBI has informed that it has been decided to maintain the contingent risk buffer (CRB) at 5.50 per cent between the financial years 2018-19 to 2021-22. This was expected to help growth and overall economic activity. The RBI said the CRB has been hiked to 6.00 per cent in the event of a revival in economic growth in the financial year 2022-23. Due to the continued strength and resilience of the economy, the Board of Directors has decided to increase the CRB to 6.50 per cent for the financial year 2023-24. Tata's Miracle: On what basis did RBI decide that the dividend payable for FY 2023-24 will be based on Economic Capital Structure (ECF)? ) accepted in August 2019. ) was taken based on The ECF was recommended by an expert committee headed by Bimal Jalan. The committee had said that the RBI's book should have a risk provision under CRP of 6.5 to 5.5 per cent. Gold, silver embraces billionaires as Federal Reserve officials spooked by reports The post RBI breaks record in opening treasury to government, paying dividends