Centre may soon get Rs 1-lakh-crore RBI dividend boost: Report

Last week, the RBI announced a substantial reduction in the government's borrowing through Treasury Bill

The Reserve Bank of India (RBI) plans to transfer a larger dividend, potentially around Rs 1 lakh crore, to the government, The Economic Times reported. It would significantly boost the Centre's coffers.

Last week, the RBI announced a substantial reduction in the government's borrowing through treasury bills, slashing the amount by Rs 60,000 crore. This decision curtails the funds that the Centre would have raised through these short-term instruments.

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Additionally, the central bank implemented measures to ensure the success of an upcoming operation, where the government plans to prematurely repay Rs 60,000 crore of previous borrowings.

Both actions aim to utilise government funds that are currently dormant due to constraints on spending related to elections. These developments also suggest that the Centre's financial position may soon see considerable improvement, as highlighted in the ET report.

The RBI, serving as the government's debt manager, is anticipated to announce the transfer of its surplus funds to the government later in May.