Finace Ministry asks RBI to ensure a higher dividend in FY22
Published On: Thursday, February 18, 2021 | By: Team KnowMyStock
The finance ministry has asked the RBI to make every effort to secure a higher dividend for the government in the financial year 2021-22 (FY22), despite sliding interest rates globally, sources said. It has also sought the RBI’s advice on gold monetisation. In the correspondence and discussions between the two, the RBI has advised against any change in the inflation goalposts. RBI Governor Shaktikanta Das has assured Finance Minister Nirmala Sitharaman that the Rs 12.05-trillion gross borrowing programme for FY22 will go through smoothly. To ensure it, the RBI team has, however, cautioned the government against any dilution of the inflation management policies, and the targets under the monetary policy framework, sources said.
The central government, in consultation with the RBI, is supposed to review the targets next month. Under the legislation for the monetary policy framework passed in 2016, the RBI’s monetary policy committee has to adhere to an annual inflation goal. The goal was set at 4 per cent with a possible slippage within a 2 per cent range. The numbers come up for review in March but after the discussions between Sitharaman and Das, they are not expected to change.
Tags: Finance ministry RBI FY2022
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