InvestorQ : How did the RBI manage to pay such a big dividend of Rs.100,000 crore to the government?
Juvina Maggie made post

How did the RBI manage to pay such a big dividend of Rs.100,000 crore to the government?

Answer
image
Deepa Salunkhe answered.
3 weeks ago
Follow

That is a good question as how did RBI, which struggled to transfer surplus to the government last year, has paid close to Rs.100,000 crore to the government as dividends in the FY21 period. This is largely attributed to the hefty gains made in the foreign exchange transactions booked by the RBI during the year. Apart from that, the RBI sharply cut down provisions and other costs, and that actual impact of this move is not yet known.

Effective this year, RBI has decided to shift its fiscal year-end from June ending to March ending in order to align with the Union Government fiscal year for simplicity of administration. Hence this annual report is just for 9 months period. In the latest year, the forex transactions spurted by 70% to Rs.50,629 crore showing RBI was active in forex markets. But this was also helped in large measure by a forex accounting change.

2 Views