The government expects to receive Rs 73,948 crore as dividend from the Reserve Bank of India (RBI) and state-run lenders in FY23, according to Budget estimates.
At Rs 73,948 crore, the budgeted dividend revenue for the next financial year from the central bank and PSU banks is a massive 27 percent lower than the revised estimate of Rs 1.01 lakh crore for FY22.
The revised estimate was higher by a huge 89.4 percent after the RBI transferred a dividend of Rs 99,122 crore in FY22.
The lower Budget estimate for FY23 is puzzling because the RBI's dividend was for a truncated nine-month financial year.
In 2020, the central bank moved from a July-June accounting year to April-March to align its financial year with that of the government's. July 2020 to March 2021 was a nine-month transition period.
The dividend the RBI will transfer to the government for FY22, likely in May 2022, will be a for a full 12-month financial year.
| Year | RBI dividend to Centre (in Rs crore) |
| FY14 | 33,010 |
| FY15 | 52,679 |
| FY16 | 65,896 |
| FY17 | 65,876 |
| FY18 | 30,659 |
| FY19 | 50,000 |
| FY20 | 1,75,988 |
| FY21 | 57,128 |
| FY22 | 99,122 |
The RBI's dividend has become an even more important source of revenue for the Centre in recent years, with a change in the central bank's economic capital framework in August 2019 resulting in even larger sums being transferred to the government. The rise in the dividend followed the RBI's acceptance of the recommendations of the Bimal Jalan-led expert committee.
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