RBI to Give 57, 128 Crores Dividend to Center

 

 The Central Bank of India , the Reserve Bank's board has approved the transfer of INR 57,128 Crores as surplus to the government for fiscal 2019-2020, in line with what the finance ministry had budgeted, but the payout will fall well short of what is needed to cover the massive fiscal gap caused due to Corona Pandemic resulting in dwindling tax collections.

Reserve Bank of India every year give the divided to Government of India and the amount varies from year to year depending upon the earning of RBI.

The RBI major source of income is OMO ( Open Market Operations )  through which is issues and purchases various bonds.

Following are the factors or source of RBI income explained in nutshell.

 India Domestic Earning

1.  A. Earnings from interest on holding of domestic securities for conducting OMOs 
2.  Interest on loans & advances to centre and state govts/banks & FIs
3. Discount/exchange /commission/ rent
   
   
   Other Foreign sources:
   1. Earnings from foreign currency assets 

Pre Payment of Floating loans not to be penalised

The Reserve Bank of India on Monday directed non banking financial companies (NBFC) not to levy pre-payment penalties on floating rate term loans including housing, corporate, auto and personal loans. Earlier in May 2014 , the RBI had asked banks not to levy any penalty on such loans