RBI to pay govt Rs 50,000 cr dividend
The RBI will transfer Rs 50,000 crore of its surplus money to the government. This is the highest dividend payout from the central bank since 201516, and it comes as a partial relief for the government that is struggling to replenish
public sector banks. The dividend gives the government more elbow room to infuse capital into the banks it owns. In FY17, the central bank had transferred a lower surplus, owing to the huge costs it had incurred in managing the demonetisation exercise. The RBI's expenses include interest it pays to banks when it absorbs liquidity from the system through its Repo operations.