Photo: ReutersNew Delhi: Reserve Bank of India (RBI) has yet to decide on whether to pay an interim dividend to the federal government, Governor Shaktikanta Das said. Earlier, Reuters reported that the central bank is likely to transfer an interim dividend of as much as Rs40,000 crore ($5.7 billion) to the government by March. “There’s a lot of correspondence which goes on between the government and the RBI,” Das told reporters in New Delhi on Monday. Monitoring liquidityThe central bank is monitoring liquidity and will ensure that there is enough to meet the needs of the economy, Das said. Businesses have been hit by central bank restrictions on lending by weak banks and by a cash crunch in the shadow banking sector.

Source: Mint January 07, 2019 08:15 UTC