RBI approves ₹2.11 lakh crore dividend payout to govt for 2023-24

The Reserve Bank of India approved a ₹2.11 lakh crore dividend payout to the central government for 2023-24.
| Photo Credit: Reuters

The Reserve Bank of India (RBI) on May 22 approved a ₹2.11 lakh crore dividend payout to the central government for 2023-24, more than double the amount it paid for the previous 2022-23 financial year.

The decision was taken 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 ₹2,10,874 crore as surplus to the Central Government for the accounting year 2023-24,” RBI said in a statement.

The dividend payout was ₹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%. As the economy remains robust and resilient, the Board has decided to increase the CRB to 6.5% for FY 2023-24,” the RBI said.

Analysts had expected a surplus transfer in the range of 750 billion rupees to 1.2 trillion rupees, aided by strong foreign exchange earnings.

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The benchmark 10-year bond yield dropped four basis points to 7% after the announcement.

The board reviewed the global and domestic economic scenario, including risks to the outlook, the statement added.

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