RBI board expected to consider dividend payout to government on Friday

The government has budgeted to receive a total Rs 48,000 cr ($5.8 bn) from the RBI and other financial institutions it holds stakes in

The Reserve Bank of India’s board will meet on Friday, when it is expected to consider a dividend payout to the government, according to people with knowledge of the matter.

The meeting will be held in Mumbai, the people said, asking not to be identified as the details are private. The authority typically reviews its finances and how much it can transfer to the government during its May board meeting. 

 

An email to the RBI wasn’t immediately answered. 

The government has budgeted to receive a total 480 billion rupees ($5.8 billion) from the RBI and other financial institutions it holds stakes in. 

 

Analysts including those at Standard Chartered Plc estimate the RBI will transfer between 1 trillion rupees to 2 trillion rupees to the government as a dividend for the year ended March 31. The RBI’s dividend for the previous year was 303.1 billion rupees.