By Admin 
Dividend payment: Prime Minister Narendra Modi’s government is expected to get huge dividends from the Reserve Bank of India (RBI) for FY 2025. According to an Economic Times report, the Central Government is expected to get more than Rs 2.5 lakh crore as a dividend from the Reserve Bank for FY 2025. In the last financial year (FY 2024), RBI gave Rs 2.11 lakh crore to the central government. In FY 2023, the Reserve Bank gave double the amount to the government.
Government will help a lot with more dividend
If a surplus of Rs 2.5 lakh crore is transferred to the government by RBI for FY 2025, then the central government will get relief due to this being more than the budget estimate for FY 2026. This amount will help the government to reduce the fiscal deficit. Apart from this, it will also empower the government in the matter of increasing cash in banking systems.
Significantly, the Modi government had estimated a dividend of Rs 2.2 lakh crore in the budget. The ETs report quoting economists mention that the RBI sold a huge amount of dollars to protect the exchange rate of the rupee and the interest earned from large scale liquidity operations has increased the possibilities of getting bumper payments for the government for FY 2025.
What is dividend?
The Reserve Bank of India gives a part of its income to the government as dividend. This is a very big source of revenue for the government. With this, the government meets all its financial needs.
Now the question comes, what is the source of RBI’s earnings? From the printing of currency to commercial banks earns the Reserve Bank from interest on loans. Apart from this, the RBI also makes a lot of profit due to the purchase and sale of government bonds. RBI also earns from the foreign asset placed in foreign exchange reserves. Investment in the US bond market also gets interest to the Reserve Bank, it also earns.
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