Reserve Bank of India to Transfer ₹ 1.76 Lakh Crore to Government
News Desk
In a major boost to the Indian economy, the Reserve Bank of India (RBI) approved a record Rs.1.76 lakh-crore ($24.4 billion) payout to the central government. This boost comes at a time when the Indian Government is under pressure to provide a fiscal stimulus to the slowing economy.
The RBI board approved a transfer, which includes Rs. 1.23 lakh crore as dividend and Rs. 52,640 crore from its surplus capital, according to a statement. The dividend payment includes Rs. 28,000 crore already transferred to the government in February. The amount is more than twice the 68,000 crore lended by the RBI to the Modi Government last year.
It may be mentioned here that over the past couple of years, the Finance Ministry has been seeking higher payouts, arguing the central bank is holding more capital than it needs.
Meanwhile, in worrying signs for the Indian economy, the gross domestic product expanded 5.7 per cent in the quarter ended June, slower than the 5.8 per cent pace seen in the previous three months.
Meanwhile, in condemnation of the move, Rahul Gandhi wrote, “PM & FM are clueless about how to solve their self created economic disaster. Stealing from RBI won’t work – it’s like stealing a Band-Aid from the dispensary & sticking it on a gunshot wound.”