The Reserve Bank of India approved additional interim dividend payment of Rs. 28,000 crore to the government of India, which is desperate for cash to fund populist pledges ahead of a national election. This decision was taken at the meeting of the RBI’s Central Board in New Delhi.
“Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs. 28,000 crore to the central government for the half-year ended December 31, 2018,” Reserve Bank of India said in a press release.
This is the second successive year that the Reserve Bank will be transferring an interim surplus.