India Gets Record $25 Billion RBI Payout as Voting Nears End
- Central bank will pay government double what was budgeted
- This may allow government to slash its borrowing this year
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India’s central bank will pay a 2.1 trillion-rupee ($25 billion) dividend to the government, more than double what was budgeted, shoring up fiscal revenues before a new administration takes office after elections.
The transfer was approved Wednesday by the Reserve Bank of India board in a meeting in Mumbai, the central bank said on its website. The government had budgeted to receive 1.02 trillion rupees in dividends from the RBI and state-controlled banks. The central bank also raised its contingency risk buffer to 6.5%, citing resilience in economic growth.