The Reserve Bank of India (RBI) has approved the transfer of ₹2,68,590.07 crore as surplus to the central government for the financial year 2024-25. This was announced following the 616th meeting of the Central Board of Directors held on May 23, 2025, under the chairmanship of RBI Governor Sanjay Malhotra.
Highest-Ever Dividend
This surplus marks the highest-ever dividend payout by the RBI. It exceeds the ₹2.1 lakh crore transferred in FY24 and is significantly higher than the ₹87,416 crore transferred in FY23. The FY25 payout represents a 27.4% increase from the previous year.
Based on Revised Capital Framework
The amount was determined using the revised Economic Capital Framework (ECF), approved during a board meeting on May 15, 2025. According to the updated ECF, the Contingent Risk Buffer (CRB) must be maintained within 4.50% to 7.50% of the RBI’s balance sheet. For FY25, the CRB has been raised to 7.50%.
Board’s Economic Review
During the meeting, the board reviewed both domestic and global economic conditions and assessed associated risks. It also discussed RBI’s performance for the year April 2024 to March 2025 and approved its Annual Report and Financial Statements for FY25.
Key Attendees
The meeting was attended by Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., and Dr. Poonam Gupta, as well as Central Board Directors including Ajay Seth (Economic Affairs Secretary), Nagaraju Maddirala (Financial Services Secretary), Satish K. Marathe, Revathy Iyer, Prof. Sachin Chaturvedi, Pankaj Patel, and Dr. Ravindra Dholakia.
Government Fiscal Support
The large surplus transfer is expected to support the government in meeting its 4.4% fiscal deficit target for the current year. It will also help compensate for any shortfall in tax revenues and act as a buffer against potential import duty cuts.
Surplus Source and Report
The RBI’s surplus comes from earnings on its foreign exchange reserves, including valuation changes, interest from investments, and income from currency operations. More details will be shared in the RBI’s annual report, which is expected soon.
