The RBI will transfer ₹2.69 lakh crore as surplus (dividend) to the Union government for the financial year 2024-25.
This is 27% more than last year’s dividend of ₹2.11 lakh crore.
The RBI also decided to increase its Contingent Risk Buffer (CRB) to 7.5% of its balance sheet to handle future economic uncertainties.
Earlier, during COVID-19 years, the CRB was kept lower (5.5%) to support economic growth; it was gradually raised to 6.5% before now reaching 7.5%.
The surplus amount was calculated using the revised Economic Capital Framework (ECF) approved by the RBI board on May 15, 2025.
SBI’s chief economist said the dividend could have been over ₹3.5 lakh crore if RBI hadn't increased the risk buffer.
The dividend payout exceeds the Union Budget’s projection of ₹2.56 lakh crore in income from RBI and other institutions, which may help reduce the fiscal deficit to 4.2% of GDP.
The higher payout was supported by foreign exchange gains, dollar sales, and rising interest income.
However, the market was expecting ₹3 lakh crore, so some investors are disappointed, and this may lead to profit booking after recent market gains.
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