RBI to Transfer Record ₹2.69 Lakh Crore Dividend to Government
Mumbai, May 23: The Reserve Bank of India (RBI) has announced a record dividend transfer of ₹2.69 lakh crore to the Government of India for the financial year 2024-25. This marks a 27.4% increase from the ₹2.1 lakh crore transferred in FY 2023-24.
In comparison, the dividend transferred for FY 2022-23 stood at ₹87,416 crore. The decision was taken during the 616th meeting of the RBI's Central Board of Directors, chaired by Governor Sanjay Malhotra.
The record surplus will assist the government in managing rising defense expenses, partially due to U.S. tariffs and ongoing tensions with Pakistan.
The RBI stated that the Board reviewed global and domestic macroeconomic conditions and related risks. The Board also discussed the RBI’s operations from April 2024 to March 2025 and approved the annual report and financial statements for FY 2024-25.
“The Central Board of Directors approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25,” the RBI said in a statement.
The amount has been determined based on the revised Economic Capital Framework (ECF), approved on May 15, 2025. The revised ECF requires the Contingent Risk Buffer (CRB) to be maintained between 5.50% and 6.50% of the RBI's balance sheet.
Under this framework, the Board decided to increase the CRB to 7.50% considering macroeconomic assessments. Between FY 2018-19 and FY 2021-22, the CRB was maintained at 5.50% due to the economic slowdown and COVID-19 pandemic. It was raised to 6% in FY 2022-23 and 6.50% in FY 2023-24.
The government had estimated receiving ₹2.56 lakh crore as dividends/surplus from the RBI, public sector banks, and financial institutions for FY 2025-26.
The government aims to reduce the fiscal deficit to 4.4% of GDP in the current financial year, down from the estimated 4.8% in the previous year.
ICRA Chief Economist Aditi Nayar stated that this transfer exceeds budget expectations by ₹40,000-₹50,000 crore, improving non-tax revenue and creating fiscal space to either reduce tax targets or manage higher-than-expected spending.
Further details on the revised ECF reveal that a unified approach will be used to calculate market risk buffer requirements, including off-balance sheet items and foreign exchange investments in minor currencies.
However, the revised ECF states that if the available equity falls below the required minimum threshold, no surplus will be transferred to the government until the equity shortfall is rectified.