Will continue sharing dividend with govt in mechanical way: Urjit Patel

The reports stated that the government may ask the RBI to transfer close to Rs 13,000 crore from its surpluses with the apex bank to help in recapitalisation of state-run banks.

By: PTI

Mumbai | February 7, 2018 06:15 PM IST

1 min read

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RBI cuts Repo Rate by 25 bps: Full text of third bi-monthly monetary policy, 2017-18. Reserve Bank of India Governor Urjit Patel,during a press conference at RBI in Mumbai, India, Wednesday. Express Photo by Pradip Das, 2nd Aug2017, Mumbai.

Reserve Bank Governor Urjit Patel on Wednesday said the central bank will continue to transfer surpluses to the government in ‘mechanical way’ as it has been doing in the past. There were media reports that the RBI may give additional dividend to the government in the current fiscal.

The reports stated that the government may ask the RBI to transfer close to Rs 13,000 crore from its surpluses with the apex bank to help in recapitalisation of state-run banks. “We always share the dividend with the government and we have already done that this year. That is something which is done in a mechanical way and we will continue doing so, going forward,” Patel told reporters here today. RBI follows July to June fiscal year.

RBI had transferred surpluses amounting to Rs 30,659 crore for the year ended June 30, 2017. The amount transferred in 2016-17 was less than half of what RBI had transferred in 2015-16. It had transferred Rs 65,876 crore to the government in 2015-16.

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