RBI to pay record Rs 2.69L cr dividend to Central Govt for FY25

Guwahati: Reserve Bank of India (RBI), on Friday, announced its decision to transfer a surplus of Rs 2,68,590.07 crore to the Central Government for the financial year 2024-25.

The Central Board of Directors, led by RBI Governor Sanjay Malhotra, took this decision during its 616th meeting.

The Board raised the Contingent Risk Buffer (CRB) to 7.50% of the RBI’s balance sheet, citing an updated assessment under the revised Economic Capital Framework (ECF) approved on May 15, 2025.

This adjustment reflects the current macroeconomic landscape and enhances the RBI’s risk provisioning measures.

Between FY 2018-19 and 2021-22, the Board had maintained the CRB at 5.50% to support economic stability during the pandemic and related challenges.

It later increased the buffer to 6.00% in FY 2022-23 and to 6.50% in FY 2023-24.

With the latest revision, the Board aims to strengthen the central bank’s financial resilience while facilitating the surplus transfer.

During the meeting, the Board reviewed both global and domestic economic trends, including risks that could impact growth.

Members also evaluated the RBI’s operations for the year spanning April 2024 to March 2025 and approved the Annual Report and Financial Statements for FY 2024-25.

Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., and Dr. Poonam Gupta, along with other Central Board Directors such as Ajay Seth (Department of Economic Affairs), Nagaraju Maddirala (Department of Financial Services), Satish K. Marathe, Revathy Iyer, Prof. Sachin Chaturvedi, Pankaj Ramanbhai Patel, and Dr. Ravindra H. Dholakia, participated in the discussions.

This substantial surplus transfer is expected to bolster government finances and reflect the RBI’s commitment to fiscal prudence and economic stability.