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The Indian government expects its dividend income from the Reserve Bank of India for the current financial year ending March to stay at levels similar to the last financial year, a government source told reporters on Monday.
The Reserve Bank of India board had approved a transfer of 874.16 billion rupees ($10.55 billion) as surplus to the government for fiscal year 2022/23, which was paid in May 2023 and gets accounted in fiscal 2024 for the government.
For fiscal 2025, the government has budgeted a 1.02 trillion rupees surplus transfer from RBI and public sector banks, but had not provided a break-up between the two in the budget.
The government is carrying modest cash balances to meets its spending commitments for the current fiscal year and would review its borrowing requirements via treasury bills soon to see if there is any possibility of cutting it down, the source said.
The source declined to be named as they are not authorised to speak to the media. ($1 = 82.8550 Indian rupees) (Reporting by Nikunj Ohri and Shivangi Acharya; Writing by Swati Bhat; Editing by Savio D'Souza)