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|18 February, 2019

India central bank to transfer $3.92bln interim surplus to government

Prime Minister Narendra Modi's government has been pushing the RBI for more money ahead of what is expected to be a tight national election due by May

Image used for illustrative purpose only. A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, India November 15, 2016.

Image used for illustrative purpose only. A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, India November 15, 2016.

REUTERS/Mukesh Gupta

The Reserve Bank of India (RBI) on Monday decided to transfer an interim surplus of 280 billion rupees ($3.92 billion) to the government for the half year ended Dec. 31.

The central bank's board announced it after a post-budget meeting with Finance Minister Arun Jaitley and other ministry officials in New Delhi.

This was on top of 500 billion rupees paid to the government in August 2018, including 100 billion rupees interim dividend paid in March 2018. 

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Prime Minister Narendra Modi's government has been pushing the RBI for more money ahead of what is expected to be a tight national election due by May to fund a widening fiscal deficit.

($1 = 71.3830 Indian rupees)

(Reporting By Arnab Paul in Bengaluru; Editing by Rashmi Aich) ((arnab.paul@thomsonreuters.com; +91 8067493881; Reuters Messaging: arnab.paul.thomsonreuters.com@reuters.net))

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