Mumbai: The Reserve Bank of India (RBI) has approved a record transfer of over 2.68 lakh crore rupees as surplus to the Central Government for the financial year 2024-25. The decision was taken by the Central Board of Directors of RBI.
In the previous fiscal year this was at Rs 2.1 lakh crore.The reason for this payout is an increase in dollar sales and gains from foreign exchange. This dividend will support the Centre’s efforts to reduce the fiscal deficit to 4.4 per cent for the current fiscal year.
‘During the accounting years 2018-19 to 2021-22, due to the prevailing macroeconomic conditions and the impact of the Covid-19 pandemic, the Board decided to maintain the CRB at 5.50 percent of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity. The CRB was increased to 6.00 percent for FY 2022-23 and to 6.50 percent for FY 2023-24. Based on the revised ECF and considering the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 percent. The Board then approved the transfer of Rs 2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25,’ the central bank said in a statement.
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In FY24, a record dividend of Rs 2.1 lakh crore was paid by the RBI to the government, while the payout for the financial year 2022-23 stood at Rs 87,416 crore.
The surplus was calculated under the revised Economic Capital Framework, which now mandates maintaining the Contingent Risk Buffer (CRB) between 5.50 per cent and 7.50 per cent of the central bank’s balance sheet. For 2024-25, the CRB has been increased to 7.50 per cent.
Annually, the RBI transfers a portion of its surplus income, generated from investments, fluctuations in the value of its dollar reserves, and revenue from currency printing fees, to the central government.
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