This year the government is going to earn Rs 80,000 crore from the central bank.Image Credit source: File Photo: Getty
The Reserve Bank of India is not only the bank of the banks of India, but it is also the bank of the Government of India. That’s why the government also has a share in the income of the central bank. This year, the government is going to earn a total of Rs 80,000 crore from the central bank, which may be double the government’s budget estimate.
RBI has earned a lot of profit from foreign exchange transactions this year. Whereas due to the continuous increase in the repo rate, the income of the central bank from the local banks has increased. Therefore, the profit of the central bank has increased, due to which it can give a dividend of about Rs 80,000 crore to the government.
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RBI lends money to other banks of the country only at the repo rate. It has been increasing continuously since May this year. The central bank last increased it in February 2023 and now it is at the rate of 6.5 percent. Let us tell that the financial year of Reserve Bank of India is from July to June.
The government had expected 48000 crores
When Finance Minister Nirmala Sitharaman presented the budget for the financial year 2023-24 in February. In it, an estimate of Rs 48,000 crore total dividend was expressed from the Reserve Bank of India and public sector banks. Economist Gaura Sengupta at IDFC First Bank says that RBI’s dividend this year could exceed budget estimates. It is expected to be between Rs 70,000 to 80,000 crores.
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The central bank had transferred Rs 30,307 crore as surplus to the central government in the financial year 2021-22.
Let us tell you that this year, in the financial year 2022-23, between April and February, the RBI had done a record foreign exchange transaction worth $ 206 billion. It was only $ 96 billion in the previous financial year.
Dividend is decided by the formula of 2019
The central bank had changed its accounting framework in 2019. This was recommended by a committee headed by former RBI governor Bimal Jalan. Under this, the cost of foreign exchange transactions was decided on the basis of historical cost instead of weekly basis.
At present, the historical cost of buying a dollar is Rs 63. While RBI sells dollars at market cost. It has remained at an average of Rs 80 throughout the year. In this way, RBI has earned 68,990 crores from foreign exchange transactions.