Finance Minister Arun Jaitley and Reserve Bank of India Governor Shaktikanta Das
Finance Minister Arun Jaitley and Reserve Bank of India Governor Shaktikanta Das
The Reserve Bank of India (RBI) on Monday said that it will give Rs 28,000 crore to the government as interim dividend.

“Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central government for the half-year ended 31 December 2018,” the central bank said in a statement.

“Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central government for the half-year ended 31 December 2018,” the central bank said in a statement.

This is the second successive year that the Reserve Bank will be transferring an interim surplus. Last financial year, the RBI had paid an interim dividend of Rs 10,000 crore to the Centre.

On Monday, Union Finance Minister Arun Jaitley held a post-budget meeting of the Central Board chaired by RBI governor Shaktikanta Das.  The Board reviewed the current economic situation, global and domestic challenges and other specific areas of operations of the Reserve Bank. Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of ₹ 280 billion to the central government for the half-year ended December 31, 2018. This is the second successive year that the Reserve Bank will be transfering an interim surplus.

The RBI’s Monetary Policy Committee (MPC) had cut the repo rate by 25 basis points to 6.25 per cent on February 7 and shifted its stance from ‘calibrated tightening’ to ‘neutral’ after factoring in the sliding inflation rate. “The transmission of rates is very important when the RBI announces rate cuts,” said Das after meeting Jaitley. “We are in touch with the CEOs and Managing Directors of both public and private sector banks. We will discuss the issue with them on February 21 and see what needs to be done.”

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