Dividend to govt: High liquidity shrinks RBI surplus

Rupee appreciation hits returns on RBI's foreign assets

Abundant liquidity post-demonetisation with banks and resultant reverse repo measures by the Reserve Bank of India as well as cost of printing new currency notes will result in fall in the central bank's transfer of surplus to the union government this financial year, almost half of what was given in 2016-17.
 
The strengthening of the rupee against  the dollar also pulled down the value  assets owned by RBI overseas.
 
The RBI said it would transfer Rs 30,659 as surplus to the government in 2017-18, much lower than last year’s Rs 65,876 crore. The Union Budget for 2017-18 projected