MUMBAI, (Reuters) – India’s central bank has transferred 303.07 trillion rupees (3.91 billion USD) to the government to pay a dividend in respect of the fiscal year that ended March 2022. It also decided to maintain its contingency buffer at 5.5%.

This figure indicates a possible shortfall in government’s target budget of 739.48 trillion rupees (from the RBI and other financial institutions such as the State Bank of India) for the current fiscal year.

The Reserve Bank of India (RBI), in a statement said that its board had reviewed the economic and geopolitical situation and assessed the potential impact of these developments on the economy.

According to the bank, “The board has approved transfer of 303.07 million rupees surplus to central government for the accounting years 2021-22.” It added that it had also approved its annual report for fiscal year 2021-22 and its accounts.

In the nine months from March 2021, the bank reported a surplus transfer (or dividend) of 991.22 million rupees. The bank moved from July to June to an April-March accounting year in 2021/22.

The government receives an average of 100 billion rupees per year from financial institutions. That suggests the RBI’s less-than-hoped transfer will mean that it won’t reach its goal.

The Reserve Bank of India increased the repo rate it lends banks by 40 basis point to 4.40% at an unexpected meeting held on May 4. This was its first rate increase in almost four years, and the first rate change in 2 years.

($1 =77.5050 Indian rupees