• Source:PTI
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RBI Dividend:  The Reserve Bank Of India on Wednesday approved a dividend of Rs 2.11 lakh crore to the central government for 2023-24, more than double the amount the central bank paid the previous financial year, FY 2022-23. The same was decided at the 608th meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.

"The Board...approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24," RBI said in a statement.

The Reserve Bank had paid Rs 87,416 crore for 2022-23.

"With the revival in economic growth in FY 2022-23, the Contingent Risk Buffer (CRB) was increased to 6.00 percent. As the economy remains robust and resilient, the Board has decided to increase the CRB to 6.50 percent for FY 2023-24," the RBI said.

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The central government plans to keep the fiscal deficit or the gap between expenditure and revenue at Rs 17.34 lakh crore (5.1 percent of GDP) during the current financial year.

In the Budget 2024-25, the government had estimated dividend income of Rs 1.02 lakh crore from the RBI and public sector financial institutions. The RBI Board also reviewed the global and domestic economic outlook, including risks to the growth outlook. The Board discussed the functioning of the Reserve Bank during 2023-24 and approved its annual report and financial statements for the previous financial year.

The RBI said that during the accounting year 2018-19 to 2021-22, due to the prevailing macroeconomic conditions and the onslaught of the COVID-19 pandemic, the Board had decided to maintain the Contingency Risk Buffer (CRB) at 5.50 percent. The size of the Reserve Bank's balance sheet to support growth and overall economic activity.

The RBI said the transferable surplus for 2023-24 has been worked out based on the economic capital framework (ECF) adopted in August 2019, as per the recommendations of the expert committee headed by Bimal Jalan. The committee had recommended that the risk provision under CRB should be maintained in the range of 6.5 to 5.5 percent of the RBI's balance sheet.

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With agency inputs