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RBI Approves Record Rs 2.69 Lakh Crore Dividend to Government for FY25

The Reserve Bank of India raises its Contingent Risk Buffer to 7.5% under a revised Economic Capital Framework, boosting government finances significantly.

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RBI declares record dividend to centre. | Image: RBI
Signage of Reserve Bank of India seen at its headquarters in Mumbai. Photo: Vijay Sartape/NDTV Profit
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Overview

  • The RBI's Central Board, chaired by Governor Sanjay Malhotra, approved the record dividend payout at its 616th meeting on May 23, 2025.
  • The Rs 2.69 lakh crore transfer is a 27% increase from last year's Rs 2.1 lakh crore payout and exceeds the government's budgeted expectation of Rs 2.56 lakh crore.
  • The surplus reflects gains from foreign exchange operations, valuation of reserves, and investment income, alongside prudent financial management.
  • The Contingent Risk Buffer was raised to 7.5% of the RBI's balance sheet, reinforcing financial stability and risk provisioning.
  • The transfer provides the government with additional fiscal space, aiding efforts to reduce the fiscal deficit to 4.4% while supporting planned expenditures.