Reserve Bank of India (RBI) On Wednesday announced a dividend payment of Rs 2.11 lakh crore to the central government for the financial year 2023-24. This amount is more than double that of a year ago. For the financial year 2022-23, RBI had given a dividend of Rs 87,416 crore to the government. Such a huge amount will be given to the government treasury by RBI. This will fill the government treasury and help in completing the development projects.
Decision under the chairmanship of Shaktikanta Das
The decision to pay dividend was taken in the 608th meeting of the Central Board of Directors of RBI held under the chairmanship of Governor Shaktikanta Das. The Reserve Bank said in the statement, “The Board of Directors approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24.”
Increased emergency buffer
“The Emergency Risk Buffer (CRB) was increased to 6.00 per cent on revival of economic growth in FY 2022-23,” the RBI said. Due to the continued strength and resilience of the economy, the Board of Directors has decided to increase the CRB to 6.50 percent for the financial year 2023-24.
Decision based on Bimal Jalan’s committee
RBI said that the decision regarding the dividend amount payable for the financial year 2023-24 has been taken on the basis of the Economic Capital Framework (ECF) adopted in August 2019. The ECF was recommended by an expert committee headed by Bimal Jalan. The committee had said that the risk provision under CRB should be kept in the range of 6.5 to 5.5 percent of RBI’s book.
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