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This year's surplus transfer is big jump from ₹2.1 lakh crore transferred in 2023-24. (Image courtesy: Pixabay)

RBI to transfer record ₹2.69 lakh cr dividend to Centre for FY25, raises risk buffer to 7.5%

| @indiablooms | May 23, 2025, at 09:18 pm

Mumbai: The Reserve Bank of India (RBI) on Friday announced a record dividend payout of ₹2.69 lakh crore to the Central government for the financial year ending March 2025—a 27.4% jump from the ₹2.1 lakh crore transferred in 2023-24.

For comparison, the surplus transferred in 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, according to PTI.

The board also assessed the global and domestic economic scenarios and the associated risks.

In addition to approving the Annual Report and Financial Statements for FY25, the board evaluated the RBI’s overall performance for the period April 2024 to March 2025.

“The Board...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 surplus transfer was calculated using the revised Economic Capital Framework (ECF), which the board adopted on May 15, 2025.

Under the updated ECF, the Contingent Risk Buffer (CRB)—used for risk provisioning—is required to be maintained between 4.5% and 7.5% of the RBI’s balance sheet. Given the macroeconomic conditions, the board decided to raise the CRB to 7.5%.

What is the Economic Capital Framework?

The ECF guides the RBI’s dividend payouts to the government. Introduced in August 2019 based on recommendations from the Bimal Jalan-led expert committee, it suggests maintaining a CRB in the range of 5.5% to 6.5% of the central bank’s balance sheet.

Last week, the RBI board reviewed the ECF to reaffirm its use in calculating surplus distribution.

In the previous fiscal year (2023-24), the RBI had transferred ₹2.1 lakh crore—more than double the ₹87,416 crore payout made in 2022-23.

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