RBI's RECORD DIVIDEND - GOING BEYOND THE NUMBERS
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- RBI's RECORD DIVIDEND - GOING BEYOND THE NUMBERS
The issue of dividend transfer by the Reserve Bank of India (RBI) to the Government of India is customarily seen as a routine measure. But given the wide range of the dividend amount ranging from ?33,110 crore in FY 13 to ?2,10,874 crore in FY 24 (see Table 1), this issue evoked extensive debates and discussion across the development spectrum not just because of the customary concerns about the health and robustness of the RBI’s balance sheet per se but also more importantly because of their monetary and fiscal implications.
While this record dividend provided distinct tailwinds to stock and bond markets and the government’s fisc, it was not entirely unexpected provided the RBI’s balance sheet and market activities were duly factored in an objective assessment of the evolving situation characterized by surging foreign exchange reserves, loans to commercial banks and effective contingent management.