 "RBI doubles dividend payout to government")
The Reserve Bank of India (RBI) paid Rs 33,000 crore to the government as surplus profit for the year ended June. This amount is more than double the amount paid in 2011-12 and the highest ever so far.
Analysts said earnings from higher interest on government bonds and slide in rupee helped RBI to be generous in giving dividend to the government. The weak Indian currency meant a sharp rise in earnings on foreign investments when brought to India.
The significant benefit of a weak currency came only in the closing months (May and June).
RBI's Central Board, at its meeting held on Thursday, approved the transfer of surplus profit to the government.
In 2006-07, the central bank had transferred Rs 45,719 crore as surplus to the Government of India, which included Rs 34,308.60 crore after it sold State Bank of India shares to the government.
Excluding this amount, the transfer of surplus for the year ended June 30, 2007 was Rs 11,411 crore.
Analysts said earnings from higher interest on government bonds and slide in rupee helped RBI to be generous in giving dividend to the government. The weak Indian currency meant a sharp rise in earnings on foreign investments when brought to India.
The significant benefit of a weak currency came only in the closing months (May and June).
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The rupee value dipped from 53.80 a dollar at the end of April to 59.39 by the end of June, according to Bloomberg data.
RBI's Central Board, at its meeting held on Thursday, approved the transfer of surplus profit to the government.
In 2006-07, the central bank had transferred Rs 45,719 crore as surplus to the Government of India, which included Rs 34,308.60 crore after it sold State Bank of India shares to the government.
Excluding this amount, the transfer of surplus for the year ended June 30, 2007 was Rs 11,411 crore.