The RBI’s top decision-making body – the Director Board is meeting on Monday to discuss the proposed dividend transfer to the government. Though the customary topics like budgetary impacts on monetary policy are also under the table, the main purpose of the meeting is expected to be on the interim dividend transfer to the government.
This year, the central bank is expected to give a much higher dividend transfer of around Rs 30000 crores compared to the previous year’s Rs 10000 crores.
FM to attend the meeting
Finance Minister Arun Jaitley is attending the meeting after a long period of disengagement with the RBI. Finance Ministry was opposed to the policies of the former Governor Urjit Patel that ended with the exit of Patel.
Now, the FM is sharing the Board meeting with the new Governor Shaktikanta Das who is supposed to be a total government man. The RBI also surprised everybody with an uncharacteristic repo cut in its last monetary policy revision.
RBI under the new Governor is of the view that inflation is at controllable level and the new approach has pleased the Finance Ministry.
The meeting is also expected to discuss some of the budget proposals and its impact on monetary policy.