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RBI approves ₹87,416 crore dividend payout to GoI for 2022-23


The Board of Directors of the Reserve Bank of India (RBI) has approved a transfer of 874.16 billion Indian rupees ($10.69 billion) to the government for the fiscal year ended March 31, it said in a statement on Friday.

The government had budgeted a dividend of 480 billion rupees from the central bank, state banks and other financial institutions for fiscal 2023.

In FY22, the RBI transferred 303.07 billion rupees to the government.

The RBI Board has also decided to increase the Contingency Risk Buffer from 5.50% to 6% previously.

Analysts had expected the overbooking of surpluses to greatly exceed budget estimates thanks to gains from large dollar sales, while higher interest income on treasury bills at home and abroad would also have helped.

However, India’s benchmark 10-year bond yield rose 5 basis points to 7.01% as market participants priced in a surplus of 1-1.5 trillion rupees.

The board also assessed the global and domestic economic situation and associated challenges during its meeting, including the impact of current global geopolitical developments, the RBI said in its release.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.