Reserve Bank of India will only be transferring Rs. 30,659 Crores as dividend for this year. The amount is less than half of what the apex bank had transferred last year. In previous year the amount paid as dividend by RBI to government was Rs 65876 crore.
Here are the most probable reasons for less money given to Government:
Demonetisation is considered as the major reason behind this low supply. Because of being busy in applying demonetisation changes, the apex bank could not concentrate more on other operations.
High Reverse Repo Rate is another probable reason considered. So RBI had to pay more to banks.
Most of the foreign companies gave negative or low return during this financial year.
High cost of printing new Currency notes could also be one reason. As there was huge increase in number of currency notes to be printed, so it increased the costs. Before demonetisation, the cost of printing was just 20% of the total expenses. But, after demonetisation it is estimated to be more than double.
After demonetisation of 500 and 1000 Rupees notes, it was RBI’s duty to collect all the old currency notes. Public deposited the notes in the banks and then RBI made arrangements to collect that money from banks. So, transportation expenses might also have cost.Tags: banking, Current affairs August 2017, national, Reserve Bank of India.