The decision was finalized at the meeting of the RBI’s Central Board of Directors, chaired by newly appointed Governor Sanjay Malhotra.
New Delhi: In a historic move, the Reserve Bank of India (RBI) on Friday announced a record dividend payout of Rs 2.69 lakh crore to the Central Government for the financial year 2024-25, marking a significant 27.4% increase over last year’s transfer of Rs 2.1 lakh crore. This is the highest ever surplus transfer by the central bank in a single fiscal year, surpassing all previous records.
The decision was finalized at the meeting of the RBI’s Central Board of Directors, chaired by newly appointed Governor Sanjay Malhotra. The board reviewed the prevailing global and domestic economic outlook and associated risks, besides evaluating the RBI’s annual performance and financial statements for the year April 2024 to March 2025.
The 'record dividend' comes as a major fiscal boost for the Central Government, which is aiming to maintain its fiscal consolidation path while managing increased capital expenditure and social sector spending.
Revised Economic Capital Framework
The dividend amount was calculated under the revised Economic Capital Framework (ECF), which was approved by the RBI board on May 15, 2025. The ECF guides how much surplus the RBI can transfer to the government while retaining adequate reserves to safeguard against financial risks.
The framework, based on recommendations from the Bimal Jalan-led Expert Committee in 2019, originally suggested maintaining the Contingent Risk Buffer (CRB) between 5.5% to 6.5% of the RBI’s balance sheet. Under the updated framework, the CRB range was revised to 4.5% to 7.5%, providing greater flexibility.
Taking into account the current macroeconomic environment, the RBI board decided to raise the CRB to the upper limit of 7.5%, ensuring robust financial resilience while still enabling a generous surplus transfer.
Consistent Uptrend in Transfers
The RBI's dividend transfer has shown a remarkable upward trend in recent years: FY 2022-23: Rs 87,416 crore, FY 2023-24: Rs 2.1 lakh crore, FY 2024-25: Rs 2.69 lakh crore.
This latest payout is expected to aid the government in meeting its budgetary commitments without resorting to additional market borrowing, and may also offer fiscal headroom for further economic stimulus or welfare spending.
Experts believe the RBI’s decision reflects confidence in the current financial stability and robust income generated from its operations, including gains from foreign exchange reserves and domestic investments.
With this record surplus transfer, the RBI continues to play a crucial role not only in maintaining monetary stability but also in supporting the government’s fiscal objectives.
New Delhi: In a historic move, the Reserve Bank of India (RBI) on Friday announced a record dividend payout of Rs 2.69 lakh crore to the Central Government for the financial year 2024-25, marking a significant 27.4% increase over last year’s transfer of Rs 2.1 lakh crore. This is the highest ever surplus transfer by the central bank in a single fiscal year, surpassing all previous records.
The decision was finalized at the meeting of the RBI’s Central Board of Directors, chaired by newly appointed Governor Sanjay Malhotra. The board reviewed the prevailing global and domestic economic outlook and associated risks, besides evaluating the RBI’s annual performance and financial statements for the year April 2024 to March 2025.
The 'record dividend' comes as a major fiscal boost for the Central Government, which is aiming to maintain its fiscal consolidation path while managing increased capital expenditure and social sector spending.
Revised Economic Capital Framework
The dividend amount was calculated under the revised Economic Capital Framework (ECF), which was approved by the RBI board on May 15, 2025. The ECF guides how much surplus the RBI can transfer to the government while retaining adequate reserves to safeguard against financial risks.
The framework, based on recommendations from the Bimal Jalan-led Expert Committee in 2019, originally suggested maintaining the Contingent Risk Buffer (CRB) between 5.5% to 6.5% of the RBI’s balance sheet. Under the updated framework, the CRB range was revised to 4.5% to 7.5%, providing greater flexibility.
Taking into account the current macroeconomic environment, the RBI board decided to raise the CRB to the upper limit of 7.5%, ensuring robust financial resilience while still enabling a generous surplus transfer.
Consistent Uptrend in Transfers
The RBI's dividend transfer has shown a remarkable upward trend in recent years: FY 2022-23: Rs 87,416 crore, FY 2023-24: Rs 2.1 lakh crore, FY 2024-25: Rs 2.69 lakh crore.
This latest payout is expected to aid the government in meeting its budgetary commitments without resorting to additional market borrowing, and may also offer fiscal headroom for further economic stimulus or welfare spending.
Experts believe the RBI’s decision reflects confidence in the current financial stability and robust income generated from its operations, including gains from foreign exchange reserves and domestic investments.
With this record surplus transfer, the RBI continues to play a crucial role not only in maintaining monetary stability but also in supporting the government’s fiscal objectives.
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