Govt expects Rs 90,000 cr dividend from RBI in FY'20

Finance Secretary Subhash Chandra Garg said the government expects Rs 90,000 crore as dividend from the RBI in the current fiscal.

This is 32 per cent jump from the previous fiscal, when the central bank paid Rs 68,000 crore to the government including Rs 28,000 crore as interim dividend.

This was the highest receipt from the Reserve Bank in a single financial year, exceeding the Rs 65,896 crore received in 2015-16 and Rs 40,659 crore in 2017-18.

"The Reserve Bank dividend will come after the annual meeting. The government has estimated about Rs 90,000 crore as dividend from the RBI," he said.

The Reserve Bank follows July-June financial year and usually distributes the dividend in August after annual accounts are finalised.

The Union Budget 2019-20 has pegged dividend or surplus of the RBI, nationalised banks and financial institutions at Rs 1.06 lakh crore up from Rs 74,140.37 crore realised in the previous fiscal.

Meanwhile, the RBI has set up a panel under former Governor Bimal Jalan to look into the size of capital reserves that the central bank should hold.