Govt wants RBI to frame dividend policy; to amend RBI Act

The government is nudging the Reserve Bank of India (RBI) to formalise a policy governing the yearly dividends it pays to the Centre. 

Any such policy is likely to be given statutory backing through amendments in the RBI Act. 

This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18.

A senior government official said that the government’s nominees to the RBI board – economic affairs Secretary Subhash Garg and financial services secretary Rajiv Kumar – will take this issue up in the next RBI