‘No decision yet on quantum of interim dividend to govt.’

The Reserve Bank of India has not yet taken a decision regarding the quantum of the interim dividend it will transfer to the government, RBI Governor Shaktikanta Das said on Monday. The central bank would not delay in announcing the decision once made, he said. Mr. Das was responding to queries based on a Reuters report that the RBI would be transferring anywhere between Rs. 30,000 and 40,000 crore to the Centre as interim dividend. “There have been reports, even I have seen them,” Mr. Das said at a press conference. “As and when the RBI takes any decision on any issues, you will come to know about it.” Mr. Das said that he would be meeting the NBFCs on Tuesday to get a better idea of their liquidity situation.

He said even though the RBI was monitoring the liquidity situation closely, it would be careful to infuse liquidity only as and when it was absolutely necessary, so as to avoid a situation of excess liquidity in the system. “I have had several meetings with the stakeholders and we have a sense of the current liquidity situation. We do believe that the liquidity requirements of the economy and financial institutions to a great extent are met,” Mr. Das said. “Regarding liquidity, the RBI is constantly monitoring the situation and will take steps whenever there is a need to deal with a liquidity deficit if it is noticed,” the Governor added. “At the same time, I must also add that the RBI would not like a situation where liquidity becomes a kind of loose money” Mr. Das said that he held a two-hour long meeting with MSME associations as well, on Monday, during which he achieved greater clarity on the issues to do with the sector.

“The banks have been asked to look at the viability of individual MSME before making the restructuring scheme applicable to them. We hope that the banks and the MSME units work together so that the scheme is implemented in letter and spirit,” he said. Restructuring scheme He said that the viability of each MSME unit will be gauged to ascertain whether the restructuring scheme would be available or not. “One issue which engages our attention on almost a daily basis is the status of NPAs and the health of PSBs,” Mr. Das said. “There is definitely improvement noticed in the reduction of NPA levels in the banking sector as a whole and with PSBs in particular. But the improvements have to be sustained if the banks have to fulfill their responsibilities and some of the banks have to become healthy.”

Source : https://www.thehindu.com/todays-paper/tp-business/no-decision-yet-on-quantum-of-interim-dividend-to-govt/article25936023.ece

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