Govt seeks special dividend from RBI for bank recapitalisation

To be used to fund a part of Rs 2.11-lakh crore plan to recapitalise banks

The government has sought a special dividend from the Reserve Bank of India (RBI) to fund a part of its Rs 2.11-lakh crore plan to recapitalise public sector banks.

“The RBI has been asked if it can pay a special dividend, apart from the yearly surplus that it pays the Centre. This dividend, if agreed to by the central bank, will be used only for bank recapitalisation,” said an official aware of the deliberations.

Provided talks on the matter are fruitful, the dividend payout will made during the current RBI financial year ending June 30, 2018. 

“It remains to be