New Delhi | The Reserve Bank of India (RBI) approved a record Rs.1.76 lakh-crore ($24.4 billion) payout to the central government, amid a slowing economy.
The central bank’s board approved a transfer, which includes Rs. 1.23 lakh crore as dividend and Rs. 52,640 crore from its surplus capital, according to a statement. The dividend payment includes Rs. 28,000 crore already transferred to the government in February.
The payment from its surplus capital comes after the RBI’s board accepted the recommendations of a panel named by it to study its economic capital framework, it said.
The “record transfer” of dividend and surplus capital will alleviate the risks arising out of a tax revenue shortfall.
The government will immediately inject Rs. 70,000 crore of fresh capital into state-run lenders, Nirmala Sitharaman had said on Friday as she announced a number of measures to boost the economy.
“As on June 30, 2019, the RBI stands as a central bank with one of the highest levels of financial resilience globally,” the central bank said in the statement.
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