Big boost for Centre: RBI Board declares Rs 2.68 Lakh crore surplus payout

The Reserve Bank of India (RBI) on Friday approved the transfer of a substantial dividend of Rs 2.68 lakh crore for the fiscal year 2025 to the government, marking an increase from the Rs 2.1 lakh crore in the previous fiscal year.

The reason for this payout is an increase in dollar sales and gains from foreign exchange. This dividend will support the Centre's efforts to reduce the fiscal deficit to 4.4 per cent for the current fiscal year. Additionally, the contingency risk buffer (CRB) has been raised to 7.50 per cent from 6.5 per cent.

The RBI board conducted a review of its Economic Capital Framework (ECF) on May 15, which serves as the foundation for determining the surplus transfer or dividend to be allocated to the government.

"During the accounting years 2018-19 to 2021-22, due to the prevailing macroeconomic conditions and the impact of the Covid-19 pandemic, the Board decided to maintain the CRB at 5.50 percent of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity. The CRB was increased to 6.00 percent for FY 2022-23 and to 6.50 percent for FY 2023-24. Based on the revised ECF and considering the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 percent. The Board then approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25," the central bank said in a statement.

In FY24, a record dividend of Rs 2.1 lakh crore was paid by the RBI to the government, while the payout for the financial year 2022-23 stood at Rs 87,416 crore.

This year, the RBI board conducted a thorough assessment of both the global and domestic economic environment, taking into consideration potential risks to the future prospects. In addition, the Board deliberated on the performance of the Reserve Bank throughout the period from April 2024 to March 2025, and endorsed the Reserve Bank's Annual Report as well as Financial Statements for the year 2024-25. 

The determination of the transferable surplus for the year 2024-25 was based on the revised Economic Capital Framework (ECF) that was sanctioned by the Central Board in its meeting on May 15, 2025. According to the updated framework, the risk provisioning under the Contingent Risk Buffer (CRB) should fall within a range of 7.50 to 4.50 per cent of the RBI's balance sheet.

This dividend distribution is expected to alleviate financial strain on the government as it continues to focus on capital expenditures and upholds tax relief measures outlined in the Budget for the fiscal year 2026.

Annually, the RBI transfers a portion of its surplus income, generated from investments, fluctuations in the value of its dollar reserves, and revenue from currency printing fees, to the central government.