India's central bank, the Reserve Bank of India (RBI), will pay a record dividend of ₹2.11 lakh crore ($25 billion) to the federal government. This substantial payout is expected to shore up fiscal revenues and aid in meeting the budget deficit target. The dividend, which is higher than previous estimates by 0.2-0.3% of GDP, comes at a crucial time before a new government takes office. Finance Secretary TV Somanathan welcomed the news, noting that increased revenues are beneficial. The move is also seen as a counterbalance to lower divestment receipts and is expected to support domestic bond yields. Additionally, the government’s bond buyback programme received a poor response, and the decision to pay the dividend is aided by a higher cash balance.
#OnCNBCTV18 | ‘#RBI Dividend will be a good counterbalance to lower divestment receipts. Don’t think it will immediately lead to lower govt borrowing’ Taimur Baig discusses bumper Rs 2.11 lakh cr #RBIdividend payout. Says the move will be supportive of domestic bond #yields https://t.co/4ORXpnt9j2
India Tonight | Decoding RBI's Bumper ₹2.11 Lk Cr Dividend To Central Govt | Swaminathan Aiyer https://t.co/K8elLQYRGu
Why the #RBI declared a hefty #dividend — An explainer @latha_venkatesh https://t.co/yLsLLbZu54
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‘RBI dividend is a good news for the fisc, it’s higher than estimates by 0.2-03% of GDP - also shrugs off poor response to its bond buyback programme - says govt does buyback only if the yields are right’ https://t.co/nAcXxPnQtA
#NewsFlash | It’s good news, it’s always good when revenues go up, says TV Somanathan, Finance Secretary on #RBI Dividend Here's more👇 https://t.co/JKosJeoslC
Anand Mahindra on RBI's record dividend to the government👇 @anandmahindra https://t.co/0RoED3wwcr
India’s central bank will pay a $25 billion dividend to the government, shoring up fiscal revenues before a new government takes office https://t.co/yq0u8ZRPJ0
India’s central bank is expected to pay up to 1 trillion rupees ($12 billion) as dividend to the federal government, economists say, a move that would help meet its budget deficit target https://t.co/lNx9CLRoBy
India may consider cutting its bonds sales this year aided by a higher cash balance, sources say https://t.co/u2jgS6Bzrm