Markets

News Details

( 10/08/2018 10:07)
Option to interim dividend from RBI open: Garg

The option of interim dividend from the Reserve Bank of India during the financial year is open and decision in this regard may be taken later this year, Economic Affairs Secretary S C Garg said according to the PTI..

Earlier, the RBI board decided to pay Rs 50,000 crore as dividend to the government for the financial year ended June 2018. RBI follows July-June fiscal year.

Explaining the break up of dividend announced by RBI, Garg said, "You declare dividend after year closes. RBI financial year closes on June 30, now they are finalising accounts and they declared Rs 50,000 crore as dividend. Rs 10,000 crore (as interim dividend) was received last year (FY18), Rs 40,000 crore will come (FY19)."

When asked if there is scope for interim dividend, he said the option remains open.

"Like we did last year there may be interim dividend this year. The review could happen later may be December, " he said.

He said the RBI dividend announcement is close to estimates.

As per the Budget Estimate, the government projected to collect Rs 54,817.25 crore as dividend or Surplus of Reserve Bank of India, Nationalised Banks and Financial Institutions. The government realised Rs 51,623.24 crore under this head in the previous fiscal.

It is to be noted that the RBI transferred a surplus of Rs 30,659 crore as dividend to the government for the year ended June 30, 2017, which was less than half of what it paid in the previous year (Rs 65,876 crore).

The surplus payout in June 2017 year was low on account of expenses incurred on printing of new currency notes following demonetisation effected on November 9, 2016.

Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others.

ATTENTION INVESTORS 1 : "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case | 2 : "Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. | 3 : KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.

SEBI Regn. NSE: INB231280430 I F&O: INF231280430 I BSE: INB011280436 I NSE CD: INE231280430 I MCX-SX: INE261280430

Copyright © 2017 Rikhav Securities Ltd. All rights reserved

Designed , Developed & Content Powered by DION