RBI Approves Historic Surplus Transfer of ₹2.69 Lakh Crore to Government

RBI's Record Surplus Transfer

The Reserve Bank of India's central board has sanctioned an unprecedented surplus transfer of ₹2.69 lakh crore to the central government for the fiscal year 2024-25. This decision was made during the 616th meeting of the RBI's Central Board held on Friday.

This amount marks the highest surplus transfer ever recorded by the RBI for FY 2024-25. In the previous fiscal year ending March 2024, the RBI had transferred ₹2.1 lakh crore to the government.

In an official statement, the RBI confirmed, "The Board subsequently approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25."

From the accounting years 2018-19 to 2021-22, the Central Board opted to maintain the Contingency Risk Buffer (CRB) at 5.50% of the Reserve Bank's balance sheet size to bolster growth and economic activity amid challenging macroeconomic conditions and the impact of the Covid-19 pandemic.

Future Projections for RBI

The CRB was raised to 6.00% for FY 2022-23 and further to 6.50% for FY 2023-24. The RBI's statement noted, "Considering the revised Economic Capital Framework (ECF) and the macroeconomic assessment, the Central Board has decided to increase the CRB to 7.50%."

During the 616th meeting, the Board also evaluated both global and domestic economic conditions, including potential risks to the economic outlook.

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 FY 2024-25. Gaura Sengupta, Chief Economist at IDFC FIRST Bank, commented on the announcement, stating, "The RBI dividend aligns with our expectations at ₹2.7 trillion compared to last year's ₹2.1 trillion (with our estimate ranging from ₹2.6 trillion to ₹3 trillion)."

Sengupta further noted, "In the FY26 Union Budget, dividends from the RBI and public sector undertakings are projected at ₹2.6 trillion, suggesting an RBI dividend of approximately ₹2.3 trillion. Although specific details are pending, it appears that income has been bolstered by earnings from foreign exchange transactions."