India’s RBI okays $24b payout to government

Bloomberg

India’s central bank approved a record 1.76 trillion-rupee ($24.4 billion) payout to the federal government, boosting New Delhi’s coffers at a time when it is under pressure to provide a fiscal stimulus to the slowing economy.
The Reserve Bank of India’s (RBI) board approved a transfer, which includes 1.23 trillion rupees as dividend and 526.4 billion rupees from its surplus capital, according to a statement. The dividend payment includes 280 billion rupees already transferred to the government in February. The payment from its surplus capital comes after RBI’s board accepted the recommendations of a panel named by it to study its economic capital framework, it said.
The transfer of dividend and surplus capital could be a timely boost for a government that is looking to step up spending as it deals with a rapidly slowing economy. Finance Minister Nirmala Sitharaman last week announced various steps to spur growth including hastening capital infusion in state-run lenders even as she strives to meet a narrower fiscal gap goal of 3.3 percent of gross domestic product. The government will immediately inject 700 billion rupees of fresh capital into state-run lenders, Sitharaman said as she announced a number of measures to stimulate growth.