The Reserve Bank of India (RBI) logo is pictured outside its head office in Mumbai. Under new Governor Raghuram Rajan, the RBI has made fighting inflation a priority because of its pernicious impact on the poor – Reuters Photo.
NEW DELHI: India’s central bank, having changed management last month following a clash with the government, is likely to transfer an interim dividend of 300-400 billion rupees (US$4.32bil-US$5.8bil) to the government by March, according to three sources with direct knowledge of the matter.
The dividend could help Prime Minister Narendra Modi’s administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May.
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