Government Pegs Lower RBI Dividend At Rs 60,000 Cr For FY 21

New Delhi: The government has budgeted for a lower dividend from the central bank and state-run lenders in the coming fiscal year, relying exclusively on an ambitious disinvestment target for resource mobilization.

Accordingly, it has provisioned Rs 89,600 crore ($12.6 billion) in dividends from the Reserve Bank of India, state-run banks and financial institutions, out of which the dividend from RBI is pegged at Rs 60,000 crore.

That’s (the dividends from RBI and PSU banks and financial institutions) much lower than the Rs 1.52 lakh crore the government estimates for the current year. The RBI pays a dividend to the government annually and allocated Rs 1.23 lakh crore last year.

The expectation of higher income from the sale of CPSEs (Rs 2.1 lakh crore) may have nudged the Finance Minister Nirmala Sitharaman to cut down reliance on dividend income for the next fiscal.

The government estimates that the RBI will pay about Rs 60,000 crore as a dividend in the next fiscal year, Economic Affairs Secretary Atanu Chakraborty said at the Post Budget press conference but he did not say anything on any interim dividend. For the last two years, the RBI has been paying interim dividends.

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