The Reserve Bank of India (RBI) is likely to provide extra dividend to the government for the ongoing financial year.
The Center has requested an additional dividend of Rs.13,000 crore from the central bank, but it is uncertain whether RBI will accede to the government’s request.
RBI needs to pay dividends to government because, under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers.
