Government seeks ?10,000cr ($1.4bn) interim dividend from RBI. Investment limit for foreign portfolio investors (FPIs) in government and corporate bonds raised to 30%.
W e Need Money: The Central Government has reportedly demanded ?10,000cr ($1.4bn) as interim dividend from the RBI for FY19-20 to bridge the fiscal gap. The demand comes at a time when tax receipts are dwindling and disinvestment goals are floundering even as the economy struggles through a prolonged slowdown that has dragged the GDP growth rate down to 4.5%.
The RBI is likely to take a final call on the interim dividend during its Central Board meeting scheduled for February 15th. Before that, Finance Minister Nirmala Sitharaman is expected to address the RBI’s Central Board.
BTW: This is the third consecutive year when the government has demanded an interim dividend from the Central Bank. BS
Bring in the Money: To bring in more foreign funds into the market, the RBI on Thursday raised the investment limit for foreign portfolio investors (FPIs) in government and corporate bonds to 30%.
Presently, short-term investments should not exceed 20% of total investment of that FPI in either central government securities or state development loans or corporate bonds.
The short-term investment limit has now been increased to 30% in both cases, the RBI has said. Livemint
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