RBI's Dividend Transfer: A Proven Formula with Future Tweaks
The Reserve Bank of India's dividend transfer policy, guided by Bimal Jalan committee's recommendations, is deemed robust but may require tweaks. As the economy grows, adjustments to the Economic Capital Framework are anticipated. These changes aim to redefine the dividend transfer formula for the next five years.
- Country:
- India
The Reserve Bank of India's (RBI) existing dividend transfer system to the government, based on the recommendations of the Bimal Jalan committee, has proven its durability, according to a government source. Some modifications may be introduced over the next five years, aligning with consistent economic growth.
The source indicated that the dividend transfer follows the economic guidelines set by the Bimal Jalan-panel's Economic Capital Framework (ECF), signaling a time for review. This approach has withstood various challenges, including the COVID-19 pandemic, with only slight alterations expected.
The RBI's anticipated announcement of its 2024-25 fiscal dividend transfer could surpass the budgeted Rs 2.56 lakh crore. In 2023-24, a record Rs 2.1 lakh crore was transferred, exceeding the prior year's figure of Rs 87,416 crore.
(With inputs from agencies.)
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