RBI to transfer Rs 2.7 lakh crore as dividend to govt, a record

MUMBAI: In an unprecedented financial move, the Reserve Bank of India (RBI) has announced its decision to transfer a record Rs 2.7 lakh crore to the government as a dividend for the current fiscal year. This figure surpasses last year's substantial transfer, reflecting a strategic enhancement in the central bank's financial operations and surplus management. The decision to release this significant amount aligns with the government's fiscal strategy to bolster economic growth, particularly in the post-pandemic recovery phase. The transfer is expected to aid in funding infrastructure projects, social welfare schemes, and other critical initiatives that require substantial financial backing to sustain momentum in economic recovery. Experts in the financial sector have noted that this record transfer could ease the government's borrowing needs, potentially stabilizing market interest rates. As the RBI continues to navigate complex economic challenges, this dividend transfer underscores its pivotal role in supporting the nation's financial health and economic objectives.

— Authored by Next24 Live