RBI's dollar sales may net govt bumper dividend

India's falling currency may still have a silver lining for its federal government.

- Bloomberg

Analysts are penciling in another year of windfall dividend by the Reserve Bank of India courtesy the profits earned on selling massive amounts of dollars in its attempt to support the rupee.

IDFC FIRST Bank estimates 2 lakh crore rupees of payout by the RBI while QuantEco Research pegs the dividend around ₹1.5 lakh crore for the fiscal year that ends March. The payout stood at ₹2.1 lakh crore in the earlier year. The dividend transferred for this year will be taken for next year's budget accounting.

The likely bonanza comes at a crucial time as the government is trying to revive an economy weighed down by weak consumption, anemic private sector investments and moderating tax revenues.