Government to Receive Record Rs. 2.70 Lakh Crore from RBI in FY25:

Government to Receive Record Rs. 2.70 Lakh Crore from RBI in FY25 The Reserve Bank of India (RBI) will give Rs 2.69 lakh crore as a dividend to the central government for the financial year 2024-25 (FY25). This is the highest amount ever given by RBI. The central bank announced this record dividend payment on Friday, May 23. This is much higher compared to the Rs 2.1 lakh crore that was given to the government in the previous financial year that ended March 2024. RBI's FY25 dividend payment is 27.4 percent more than what was paid in FY24. The Reserve Bank had given a Rs 2.1 lakh crore dividend to the government for the year 2023-24. The payment was Rs 87,416 crore for 2022-23. The decision about the dividend payout was made at the 616th meeting of the Central Board of Directors of the Reserve Bank of India. The meeting was led by Governor Sanjay Malhotra. The board looked at the global and domestic economic situation, including possible risks, RBI said in a statement. The board also discussed how the Reserve Bank worked during the year April 2024 to March 2025 and approved the Reserve Bank's Annual Report and Financial Statements for the year 2024-25. The amount that can be transferred for the year (2024-25) has been calculated based on the revised Economic Capital Framework (ECF) as approved by the Central Board in its meeting held on May 15, 2025, RBI said. "The Board approved the transfer of Rs 2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25," it said. The revised framework says that the risk provisioning under the Contingent Risk Buffer (CRB) should be kept within a range of 7.50 to 4.50 percent of the RBI's balance sheet. Based on the revised ECF and considering the economic assessment, the Central Board decided to further increase the CRB to 7.50 percent, RBI said. The RBI makes a yearly payment to the government from the extra income earned from investments and changes in value of its foreign exchange holdings, including the dollar, and the fees it gets from printing currency notes. This big amount from the central bank will help the government meet its 4.4% fiscal deficit target for the current financial year by strengthening its finances and making up for any shortfall in tax collections due to slow growth. It will also create a safety cushion for any potential losses from import duty cuts as trade talks continue. Details about how the RBI managed to create this large surplus will be shared in its annual report, which is expected to be released in the coming days.