The central bank of India, Reserve Bank of India (RBI) has approved the transfer of Rs. 30,307 crore dividend (as surplus) to the union government for FY22. RBI's Central Board of Directors approved this on May 20. Additionally, the board decided to maintain the Contingency Risk Buffer at 5.50%.
However, the dividend for FY22, transferred in FY23, is quite lower than the union government's estimates and is expected to receive Rs. 73,948 crore from the central bank and PSU banks, as dividends in the 2022 Budget. Even this amount has been 27% lower than the Rs. 1.01 lakh crore the union government received in FY22. Reports mentioned that, of this sum, the central bank had contributed a huge Rs. 99,122 crore.
The central bank's dividend has become an important source of revenue for the government. So, this huge downfall in the dividend by the RBI is a shock for the government.