Transfin.

Government Seeks ?10,000cr ($1.4bn) Interim Dividend from RBI

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%.

 

POLICY

Government seeks ?10,000cr ($1.4bn) interim dividend from RBI.

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

 

Investment limit for foreign portfolio investors (FPIs) in government and corporate bonds raised to 30%.

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

FIN.

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