The Government of India has planned to push the central bank, Reserve Bank of India (RBI) for a fiscal lifeline in the form of another interim dividend, as it struggles to meet its expenditure commitments amid a steep revenue shortfall, three sources directly aware of the matter said.
The fresh call comes just months after the Reserve Bank of India (RBI) approved a Rs 1.76 lakh crore ($24.8 billion) dividend payment to the federal government, including Rs 1.48 lakh crore for the current fiscal year.
The RBI largely earns profits through its trading of currencies and government bonds. Part of these earnings are set aside by the RBI for its operational and contingency needs while the rest is transferred to the government in the form of a dividend.
It earned a surplus of Rs 1.23 lakh crore in its last financial year, which was substantially higher than previous years.