RBI to Transfer Record ₹2.69 Lakh Crore Dividend to Government for FY25

In a historic move, the Reserve Bank of India (RBI) has announced a record dividend payout of ₹2.69 lakh crore to the central government for the financial year 2024-25 (FY25). This marks the highest-ever surplus transfer by the central bank and reflects a 27.4% increase over the ₹2.1 lakh crore distributed for the previous fiscal year, FY2023-24.

To provide context, the RBI had transferred ₹87,416 crore as a dividend for FY2022-23, making the FY25 payout a significant jump in surplus distribution over recent years.

Global and Domestic Economic Development Backed This Decision

The decision was finalised during the 616th meeting of the Central Board of Directors of the RBI, held under the chairmanship of Governor Sanjay Malhotra. During the meeting, the board evaluated both global and domestic economic developments and reviewed the risks associated with the economic outlook. It also approved the RBI’s Annual Report and Financial Statements for FY2024-25.

The record surplus was determined based on the updated Economic Capital Framework (ECF), which was adopted by the Central Board in its May 15, 2025, meeting. According to the revised guidelines, the Contingent Risk Buffer (CRB)—a key provision for unforeseen risks—must be maintained between 4.5% and 7.5% of the RBI’s balance sheet. The board has opted to raise the CRB to the upper limit of 7.5%, considering current macroeconomic conditions.

RBI Income Source

"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 stated in its official communication.

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The RBI generates surplus income from various sources, including earnings on its foreign currency assets, gains from valuation changes in reserves, and revenue from currency issuance and other operations. The central bank’s annual dividend plays a crucial role in the government's fiscal planning and budgeting process.

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