Millennium Post

Govt to seek interim dividend from RBI, says Eco Affairs Secy

New Delhi: The government will seek interim dividend from the Reserve Bank of India (RBI), Economic Affairs Secretary Subhash Chandra Garg said Wednesday.

Last fiscal, the RBI paid an interim dividend of Rs 10,000 crore to the Centre. RBI follows the July-June calender.

Asked if the government will seek interim dividend from RBI this year, he said, "Yes."

The secretary also said the committee which will examine the economic capital framework of the Reserve Bank has almost been finalised.

"Panel on economic capital framework has virtually been agreed. Hopefully, soon it will be announced," he said at the sidelines of an event organised by PHD Chamber here.

On November 19, the central board of the RBI had decided to constitute an external committee to examine its economic capital framework. The composition and terms of reference of the committee were to be decided jointly by the government and the RBI.

The government and the RBI have been locked in a tussle over various issues, including transfer of excess reserves of the central bank.

Finance Minister Arun Jaitley had earlier said the government does not need any extra funds from the Reserve Bank or any other institution to meet the fiscal deficit target.

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