The Reserve Bank of India (RBI) has approved a dividend payment of ₹2.11 lakh crore to the government for the financial year 2023-24. In comparison, the dividend for FY 2022-23 was ₹87,416 crore. This information was shared in an official statement by the RBI. Today, the RBI’s Central Board of Directors held its 608th meeting in Mumbai, chaired by RBI Governor Shaktikanta Das.
RBI’s Highest-Ever Dividend for FY 2024
This is the highest dividend ever paid by the RBI in its history. Previously, the highest dividend was ₹1,76,051 crore, paid for FY 2018-19, just before the COVID-19 pandemic. This year’s dividend is more than double the amount paid last year.
RBI Board Also Focused on Potential Risks
The RBI’s board considered global and domestic conditions, including the risks to the economic outlook. They also discussed the RBI’s operations from April 2023 to March 2024. Additionally, the board approved the RBI’s annual report and financial statements for FY 2023-24.
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The RBI’s transferable surplus for FY 2023-24 was calculated based on the Economic Capital Framework (ECF) recommended by an expert committee. This framework was adopted by the RBI following the recommendations of a committee led by Bimal Jalan, which suggested maintaining a Contingent Risk Buffer (CRB) within the range of 6.5% to 5.5% of the RBI’s balance sheet.
RBI’s Statement on the Dividend
In its statement, the RBI said, “The Board of Directors has approved the transfer of ₹2,10,874 crore as surplus to the central government for the accounting year 2023-24.” The government had estimated a total dividend income of ₹1.02 lakh crore from the RBI and public sector financial institutions in this year’s budget.
Receiving more than expected from the RBI will help the government reduce its fiscal deficit. The government aims to keep the fiscal deficit at 5.1% of the GDP for FY 2024-25.
Who Attended the RBI Board Meeting?
The meeting was attended by Deputy Governors Dr. Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Shankar, Swaminathan J., and other directors of the Central Board, including Satish K. Marathe, Revathy Iyer, Anand Gopal Mahindra, Venu Srinivasan, Pankaj Ramanbhai Patel, and Dr. Ravindra H. Dholakia. The Secretary of the Department of Economic Affairs, Ajay Seth, and the Secretary of the Department of Financial Services, Dr. Vivek Joshi, were also present.
