Indian centra bank profits Rs. 2.11 tn to Govt - Lost independence?
Article's Background According to a news article published in the CNBC financial web (Read article here) on 22 May 2024 , the Board of Indian central bank (Reserve Bank of India - RBI) has approved a whopping Rs. 2.11 trillion of profit transfer to the government for the financial year ended 31 March 2024. However, Sri Lankan central bank board has approved a profit transfer to the government for the year 2023 as a loss of Rs. 314 bn. as against the reported financial loss of Rs. 114 bn. Therefore, this short article is to compare the profit transfers of the two central banks and underlying issues. RBI profit transfer to govt. - Key points in the article The profit transfer of the RBI to the government for the year 2023/24 is Rs. 2.11 tn as compared to Rs. 874.16 bn for the last year. The government had budgeted Rs. 1.02 tn of dividend income from RBI and other state owned banks and financial institutions. Analysts had expected a RBI profit transfer in the rang...