RBI approves dividend of Rs 2.11 lakh crore to government for FY24

New Delhi [India], May 22 (ANI): The Reserve Bank of India (RBI) board approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24.

The decision was taken at Apex Bank’s 608th meeting of the Central Board of Directors. Presided over by RBI Governor Shaktikanta Das, the board reviewed the global and domestic economic scenario, including risks to the outlook. The workings of Apex Bank during the year April 2023 – March 2024 were also discussed during the meeting.

The transferable surplus funds for the years 2023-24 were determined using the guidelines set by the Reserve Bank of India (RBI) in August 2019. These guidelines were recommended by a committee led by Dr. Bimal Jalan. The committee suggested that the RBI should keep aside funds for unexpected risks, known as the Contingent Risk Buffer (CRB), which should be between 5.5 per cent and 6.5 per cent of the RBI’s total assets, the release added.

“With the revival in economic growth in FY 2022-23, the CRB was increased to 6.00 per cent. As the economy remains robust and resilient, the board has decided to increase the CRB to 6.50 per cent for FY 2023-24,” the apex bank said.

The bank underlined, during accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of the Covid-19 pandemic, it had decided to maintain the CRB at 5.50 per cent of the Reserve Bank’s balance sheet size to support growth and overall economic activity.

Deputy Governors Dr. Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J. and other Directors of the Central Board – Satish K. Marathe, Smt. Revathy Iyer, Shri Anand Gopal Mahindra, Shri Venu Srinivasan, Shri Pankaj Ramanbhai Patel and Dr. Ravindra H. Dholakia – attended the meeting. Shri Ajay Seth, Secretary, Department of Economic Affairs and Dr. Vivek Joshi, Secretary, Department of Financial Services, also attended the meeting.