RBI Approves Record ₹2.68 Lakh Crore Dividend to Centre for FY 2024–25
In a historic move, the Reserve Bank of India (RBI) has approved a record dividend of ₹2.68 lakh crore to the central government for the financial year 2024–25, making it the largest-ever surplus transfer by the RBI.
The decision was finalized at a meeting of the RBI Central Board, chaired by Governor Shaktikanta Das, where the annual accounts for FY 2024–25 were also approved. The massive payout is expected to provide a substantial boost to the government's fiscal position and help fund key developmental expenditures.
Key Highlights:
- Dividend Amount: ₹2,68,590 crore
- Previous Record (FY 2023–24): ₹2.1 lakh crore
- Dividend nearly doubled from ₹87,416 crore in FY 2022–23
- Surplus to be transferred after maintaining contingency risk buffer at 6.5%
The surge in surplus is largely attributed to interest earnings on government securities, profits from dollar sales, and increased investment returns. According to RBI data, the income from interest on government bonds during FY 2024–25 was approximately ₹1.35 lakh crore, marking a sharp increase over previous years.
The Economic Capital Framework (ECF), based on recommendations by the Bimal Jalan Committee, mandates that the RBI maintain a contingency risk buffer of 5.5–6.5%. For FY 2024–25, the board decided to maintain the buffer at the upper limit of 6.5%, thereby ensuring both adequate reserves and a generous dividend.
Impact:
- Provides significant fiscal space to the government
- Helps in managing fiscal deficit without heavy borrowing
- Supports additional public spending and capital investments
This large dividend will be critical in light of the upcoming general budget and the government's infrastructure and social welfare priorities. It is expected to reduce the need for fresh market borrowings and maintain fiscal stability.
