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RBI Reportedly Declines Govt’s Demand for Additional Dividend
January 29, 2018
According to sources, the Reserve Bank of India (RBI) recently declined to fulfill the government’s demand for an additional dividend.
The central bank had transferred Rs. 30,659 crores to the government during FY17, about half of what it transferred the previous fiscal year. The government had asked it to deposit another Rs. 13,000 crores which it reportedly refused.
Experts believe the reason behind RBI’s declination could be the additional costs it had to bear due to demonetization such as the printing of new notes, fixing the liquidity problem in the market, etc.
