Government set to receive Rs. 28,000 crore interim dividend from RBI

Government set to receive Rs. 28,000 crore interim dividend from RBI 

The government of India is all set to receive Rs. 28,000 crore as interim dividend from Reserve Bank of India (RBI) for the period July to December 2018.
The Reserve Bank of India which held its meeting on February 2018 made the decision after a limited audit review and applying the Economic Capital Framework. This is welcome news for the government as it has announced several key populous decisions in the interim budget presentation ahead of the general elections which are set to be held in May 2019. 

The transfer of  the interim surplus will help the government partly finance some of the policy initiatives like the Pradhan Mantri Kisan Samman Nidhi scheme which involves a direct annual income transfer of Rs. 6,000 per year in three installments to farmers who have land holdings of up to 2 hectares. 

The RBI had earlier transferred Rs. 40,000 crore of excess surplus to the government in August 2018 taking the total dividend payout to the government to Rs. 68,000 crore for FY19.The RBI follows a July-June fiscal calendar year. The move makes it the second consecutive year that RBI will transfer interim surplus to the government.