India's cash position to improve on RBI's larger-than-budgeted surplus transfer - source

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The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai

By Nikunj Ohri

MUMBAI (Reuters) - The Indian federal government expects its cash position to improve after the central bank transferred a larger-than-budgeted surplus for the year ended March 31, 2023, a source said on Friday.

The Reserve Bank of India's (RBI) board, on Friday, approved a surplus transfer of 874.16 billion rupees ($10.69 billion) to the government for the fiscal year ended March 31, less than the market estimate of at least 1 trillion rupees.

The amount was, however higher than the government's budget of a dividend of 480 billion rupees for fiscal 2023, from the central bank and state-run banks. The RBI transferred 303.07 billion rupees to the government in fiscal 2022.

The government will assess how the additional funds will be used, the source said, speaking on condition of anonymity.

(Reporting by Nikunj Ohri; Editing by Savio D'Souza)