Reserve Bank of India Declares Historic Dividend of ₹2.69 Lakh Crore to Government

The Reserve Bank of India has made headlines by announcing a record dividend of ₹2.69 lakh crore to the government for the fiscal year ending in March. This payout represents a 27.4% increase from the previous year, showcasing the RBI's robust financial health. The decision was made during a recent board meeting, where various economic factors were assessed. The updated Economic Capital Framework played a crucial role in determining this surplus. This article delves into the implications of this significant financial move and what it means for the Indian economy.

By Narendra Chaudhary May 23, 2025, 17:50 IST

Record Dividend Announcement by RBI

Mumbai: The Reserve Bank of India (RBI) has revealed a remarkable dividend of ₹2.69 lakh crore to be allocated to the government for the fiscal year ending in March, marking a 27.4% increase compared to the previous year's payout.

In the fiscal year 2023-24, the RBI had transferred ₹2.1 lakh crore to the government, while the dividend for 2022-23 stood at ₹87,416 crore.

This decision regarding the dividend was made during the 616th meeting of the RBI's Central Board of Directors, chaired by Governor Sanjay Malhotra.

The board assessed both global and domestic economic conditions, including potential risks to the economic outlook, as stated by the RBI.

Additionally, the board reviewed the Reserve Bank's operations for the period from April 2024 to March 2025 and approved the Annual Report and Financial Statements for the fiscal year 2024-25.

The surplus available for transfer for the year 2024-25 was determined based on the updated Economic Capital Framework (ECF), which was ratified by the Central Board in its meeting on May 15, 2025.

The board confirmed the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.

According to the revised framework, the risk provisioning under the Contingent Risk Buffer (CRB) is required to be maintained between 7.50% and 4.50% of the RBI's balance sheet.

Considering the updated ECF and the macroeconomic evaluation, the Central Board opted to raise the CRB to 7.50%, as reported by the RBI.