The Reserve Bank of India’s board, chaired by Governor Sanjay Malhotra, has approved a record surplus transfer of Rs 2.69 lakh crore to the central government for the financial year 2024–25. The announcement came after the 616th meeting of the Central Board of Directors held in Mumbai.
Each year, the RBI transfers a portion of its surplus income to the Centre. This income is generated from investments, valuation changes in foreign currency reserves, and revenue from currency issuance. The transfer amount is based on recommendations of the Bimal Jalan-led committee, which reviews the RBI’s Economic Capital Framework (ECF).
This year’s dividend is significantly higher than the Rs 2.10 lakh crore transferred last year but slightly below some market expectations. Analysts had projected a payout of up to Rs 3 lakh crore, which would have helped ease fiscal pressure from aggressive capital expenditure and major tax relief measures announced in the FY26 Budget.
During the meeting, the Board also decided to raise the Contingent Risk Buffer (CRB) to 7.50%. Between 2018–19 and 2021–22, the CRB had been maintained at 5.50% due to macroeconomic challenges and the Covid-19 pandemic. It was raised to 6.00% for FY23 and 6.50% for FY24. Based on updated ECF guidelines and current macroeconomic assessments, the board has now increased the CRB further.
The substantial surplus this year is largely attributed to strong foreign exchange sales, higher returns from forex reserves, and increased interest income.
In January, the RBI was the top seller of foreign exchange among Asian central banks. India's forex reserves peaked at $704 billion in September 2024, and the RBI is estimated to have sold over $125 billion since, according to Nomura.
ICICI Research noted that the higher dividend was driven by elevated US Treasury yields, foreign exchange commissions, and interest income from government securities.
In her Budget speech on February 1, Finance Minister Nirmala Sitharaman announced that the government expects to receive Rs 2.56 lakh crore from the RBI and public sector banks in FY26.
