The Reserve Bank of India (RBI) has decided to transfer a record dividend (surplus) to the government. This is one of the largest transfers in recent years.
👉 Why this matters:
- The government will have more money to spend on infrastructure, social schemes, and public projects.
- This reduces the need for excessive borrowing, helping maintain fiscal discipline.
- More capital expenditure (capex) by the government will create jobs and boost economic growth.
👉 Impact on sectors:
- Infrastructure & PSU companies (L&T, NTPC, BHEL, Coal India) will benefit from more government spending.
- Banks may see slightly higher bond yields due to increased borrowing needs, but overall liquidity in the economy will improve.
This move is expected to boost India’s growth momentum in the coming months.
