Saturday, 21 October, 2017

Demonetisation effect? RBI halves dividend payout to govt to Rs 30659 crore

RBI Surplus To Centre Falls Sharply To Rs 30659 Crore Note ban dents RBI income
Preston Stone | 12 August, 2017, 07:54

The decline could make it harder for the government to meet its fiscal deficit target of 3.2 percent of gross domestic product for the year ending in March, although New Delhi will likely meet the shortfall by boosting revenues from other areas. This was just Rs 20 crore less than the year ago's dividend transfer of Rs 65,896 crore.

This is the lowest-ever surplus transfer by the RBI to the Centre since 2011-12 when it transferred Rs. 16,010 crore.

The twin causes - the expenditure incurred by the central bank in printing new notes as well as in sterilising liquidity after the old Rs 500 and Rs 1,000 currency notes were scrapped in November and subsequently returned to the banking system - seem to have eaten into the RBI's surplus.

According to RBI, the decision to transfer the surplus was taken by its Central Board which met here on Thursday.

North Korea Threat: US, Japanese troops prepare for war
A Filipino community leader in Guam on Thursday said North Korea's threat to bomb the USA territory is a concern for many of them. It is also mulling the acquisition of munitions that would allow it to strike North Korea missile sites.

The apex bank, however, did not cite any reasons for paying less dividend. As per the budget estimate, the government had pegged Rs 74,901.25 crore as dividend from the RBI, nationalised banks and financial institutions for the current fiscal. By that arithmetic, given that RBI is paying only Rs 30,659 crore, the amount has decreased by nearly Rs 28,000 crore for the fiscal year 2016-17. Economists believe a ban on currency notes of Rs 500 and Rs 1,000 increased the RBI's expenses. "Will the RBI reveal the breakdown of the Rs 50,000 crore loss/expenditure?"

According to India Ratings & Research Chief Economist D K Pant, the significant decline in dividend is due to reverse repo transactions, printing of notes and appreciation in rupee's value against the United States dollar.

Under attack from Congress for discrepancies in printing of currency notes post demonetisation, the RBI on Friday said it is following the best global practice and quality of notes are within "tolerance parameters".

Recommended

  • Floyd Mayweather's Advisor Says Trump Is Invited to Conor McGregor Fight

    Floyd Mayweather's Advisor Says Trump Is Invited to Conor McGregor Fight

    Party Packages including food & beverage options also are available at select viewing locations beginning at $99. Jack added: 'I'm thankful for this opportunity and I'm excited about getting another shot at a world title.
    Bimstec issues Kathmandu Declaration

    Bimstec issues Kathmandu Declaration

    EAM said that the Government of India was looking forward to the State visit of PM Deuba to India. Cooperation in hydro power sector also came up for discussion.
    Hurricane Forecasters Think We'll Have Even More Named Storms This Season

    Hurricane Forecasters Think We'll Have Even More Named Storms This Season

    A year ago, eastern Mexico was ravaged by flooding and mudslides from Tropical Storm Earl which claimed the lives of 81 people . These include weaker vertical wind shear, tradewinds and easterly wind patters coming off the west coast of Africa, he said.
  • Teekay Offshore Partners LP

    The Firm also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. Royal Bank Of Canada reaffirmed a "hold" rating on shares of Teekay Corporation in a research report on Friday, June 16th.
    Ryan Tannehill to get reconstructive surgery, will miss 2017 season

    Ryan Tannehill to get reconstructive surgery, will miss 2017 season

    It was reinjured August 3, on a noncontact play, when Tannehill crumbled to the ground while scrambling in practice. Tannehill went down with a non-contact injury last week while scrambling toward the sidelines.
    Investors Alert on Fiat Chrysler Automobiles NV (FCAU)

    Investors Alert on Fiat Chrysler Automobiles NV (FCAU)

    A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range. Fiat Chrysler's July 2017 retail sales stood at 145,391 vehicle units, down by about 6.0% YoY (year-over-year).
  • Antonio Conte 'not looking for sympathy' over size of Chelsea squad

    Antonio Conte 'not looking for sympathy' over size of Chelsea squad

    And then I repeat: "the club is trying to do their best on the transfer market". "But if you look at the number of players on loan, they can call a few back".
    Aussies in United Kingdom  fear they'll miss gay vote

    Aussies in United Kingdom fear they'll miss gay vote

    The Australian government has agreed not to push ahead with a postal vote on equal marriage before a legal challenge is heard. Parliament would vote on legislation before December 7, but only if the plebiscite shows most Australians want gay marriage.
    Akshay Kumar's Jolly LLB 2 co-star Sitaram Panchal dies of lung cancer

    Akshay Kumar's Jolly LLB 2 co-star Sitaram Panchal dies of lung cancer

    He was diagnosed with lungs and kidney cancer in 2014 and continued taking medical treatment for it. The actor is survived by wife Uma and son Rishabh Panchal who is a budding singer.
  • West Ham Makes Club Record Bid for William Carvalho

    West Ham Makes Club Record Bid for William Carvalho

    The Portugal global has been chased by a number of elite clubs, including Juventus and Arsenal , his biggest admirers in England. West Ham United are launching a £25m bid for Sporting Lisbon and Portugal midfielder William Carvalho , according to reports .
    Tim Tebow does it for the fans

    Tim Tebow does it for the fans

    Signed by the New York Mets and trying to move up in the minor leagues, Tebow has been playing with the St. Seth dabbed in celebration, then made his way around the stadium giving out high fives to everyone.
    Luzon quake  not connected to

    Luzon quake not connected to "The Big One"

    Intensity 4 was felt in Manila; Calapan, Mindoro; Subic, Zambales; Rosario, Cavite; and Sablayan, Oriental Mindoro. A magnitude 6.2 quake struck the Philippines southwest of Manila on August 11, 2017.

Liverpool say Philippe Coutinho is 'definitively' not for sale Liverpool say Philippe Coutinho is 'definitively' not for sale The statement said: " Philippe has tried very hard to find an amicable solution to this situation but to no avail ". Liverpool sold Luis Suarez to Barcelona in 2014 after the Uruguay striker pushed for a move away from Anfield .

Arsenal rally late to defeat Leicester on opening night Arsenal rally late to defeat Leicester on opening night This season, however, each of the Premier League's top seven will play in Europe, which Mourinho believes is a leveller. I feel the same pressure at Barcelona when I arrived. "Whether he does or not, I expect Arsenal to win, but only just".

White House's West Wing getting a makeover White House's West Wing getting a makeover Trump has mixed work with leisure so far, holding a meeting on the opioid crisis but also being photographed on the golf course. US President Donald Trump speaks to the press on August 11, 2017, at Trump National Golf Club in Bedminster, New Jersey .

Texas House approves sending first two special session bills to governor Texas House approves sending first two special session bills to governor But Rogers, with the Texas Rural Education Association, said he "wouldn't bet a nickel" on HB 21's chances in the Senate. House lawmakers approved the amendment in an 89-48 vote, before tentatively approving SB 5 by a 90-37 margin.

Manchester City boss Pep Guardiola makes Sergio Busquets enquiry Manchester City boss Pep Guardiola makes Sergio Busquets enquiry One of the Sky Blues' current key weaknesses is in central defence, where John Stones and Nicolas Otamendi have yet to convince. The defensive midfielder role looks a little fragile with Yaya Toure and Fernandinho both on the wrong side of 30.

Chelsea: Diego Costa will be a 'big miss' - Cahill Chelsea: Diego Costa will be a 'big miss' - Cahill Conte was able to get away with minimal rotation but that is no longer an option with a packed schedule. Antonio Rudiger could come in for Moses, with Cesar Azpilicueta pushing forwards to right wing-back.

Aurier set to sign five-year Man Utd deal Aurier set to sign five-year Man Utd deal But the French giant brought former Barcelona defender Dani Alves to Paris this summer from Juventus, leaving Aurier down in the pecking order.

War of Words Heats Up between President Trump and North Korea War of Words Heats Up between President Trump and North Korea On Thursday, the President said his message may not have been "tough enough". North Korea's weapons program has developed significantly since then.

World markets slide for third day on political tension World markets slide for third day on political tension Earlier, the dollar slipped as low as 108.91 yen, its weakest level since June 14, when the greenback fell as low as 108.81 yen. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189%.

Mourinho To Make 2 Changes: Predicted Man Utd XI vs West Ham Mourinho To Make 2 Changes: Predicted Man Utd XI vs West Ham Manchester United manager Jose Mourinho insists that he "will not cry" if he doesn't get his final transfer wish this summer. United have added striker Romelu Lukaku , midfielder Nemanja Matic and defender Victor Lindelof to their squad.

New Orleans Saints vs. Cleveland Browns - Preseason Week 1 Predictions New Orleans Saints vs. Cleveland Browns - Preseason Week 1 Predictions Kizer finished the game 11 of 18 for 184 yards with one touchdown and no interceptions playing the entire 2nd half of the game. How they play and how defensive coach Gregg Williams mixes and matches the talent should be informational.

Wisconsin father and daughter drown in Lake Suprior Wisconsin father and daughter drown in Lake Suprior According to the Saint Louis County Sheriff's Office, it wasn't long after that, that the swimmers could not be located. The firefighters floated in the water next to their upside-down boat, trying to let the waves push them toward shore.

Giroud header seals Arsenal win in season-opening thriller Giroud header seals Arsenal win in season-opening thriller Aaron Ramsey and Shkodran Mustafi are deemed fit enough for places on a substitutes' bench that also contains Olivier Giroud. Only 105 seconds it took the former leader of the Lyon's Alexander Lacazette to score his debut goal in the Premier League .

Ravens say Joe Flacco will be ready for Week 1 Ravens say Joe Flacco will be ready for Week 1 The Ravens have also lost starting left guard Alex Lewis (shoulder) and receiver-returner Tim White (thumb) for the season. The Baltimore Ravens have been without quarterback Joe Flacco for the entirety of training camp due to a back issue.

Departing Diego Costa 'will be missed' by Chelsea Departing Diego Costa 'will be missed' by Chelsea Alvaro Morata has arrived from Real Madrid to plug the gap left by Costa, but Cahill says he will prove hard to replace. The Blues shattered their club transfer record to sign Morata from Real Madrid last month.