RBI Transfers Record ₹2.69 Lakh Crore Surplus to Centre for FY25

In a landmark fiscal development, the Reserve Bank of India (RBI) has approved a record surplus transfer of ₹2.69 lakh crore to the Central Government for the financial year 2024-25. The decision, taken during the 616th meeting of the Central Board of Directors chaired by RBI Governor Sanjay Malhotra, reflects strong financial performance and macroeconomic stability. The transfer follows a hike in the Contingent Risk Buffer (CRB) to 7.5%, under the revised Economic Capital Framework (ECF).

Why in News?

The RBI has made headlines for approving the highest-ever dividend to the Government of India. This move is not only significant for fiscal policy and deficit management but also reflects India’s improving macroeconomic fundamentals post-COVID.

Context and Decision

  • RBI’s 616th Central Board meeting held on May 23, 2025.
  • Chaired by RBI Governor Sanjay Malhotra.
  • Approved ₹2,68,590.07 crore as surplus transfer for FY25.

About the Surplus Transfer

  • Surplus derived from RBI’s income from open market operations, foreign exchange, and investments.
  • Surplus is transferred after accounting for expenses, provisions, and risk buffers.

Contingent Risk Buffer (CRB) Changes

  • Maintained at 5.5% between 2018-19 and 2021-22 (COVID years).
  • Raised to 6.0% in FY23 and 6.5% in FY24.
  • Further increased to 7.5% in FY25.
  • Based on the revised ECF approved on May 15, 2025.

About the Economic Capital Framework (ECF)

  • Introduced in 2019 following recommendations of Bimal Jalan Committee.
  • Specifies guidelines for risk provisioning and surplus distribution.
  • Ensures balance between RBI’s financial stability and the government’s fiscal needs.

Participants in the Meeting

  • Deputy Governors: M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., Dr. Poonam Gupta.
  • Other Board Members: Ajay Seth (Dept. of Economic Affairs), Nagaraju Maddirala (Dept. of Financial Services), Satish K. Marathe, Revathy Iyer, Prof. Sachin Chaturvedi, Pankaj R. Patel, Dr. Ravindra Dholakia.
Summary/Static Details
Why in the news? RBI Transfers Record ₹2.69 Lakh Crore Surplus to Centre for FY25
Amount Transferred as Surplus ₹2,68,590.07 crore
Financial Year 2024–25
Chaired By RBI Governor Sanjay Malhotra
Economic Capital Framework Revised May 15, 2025
Contingent Risk Buffer (CRB) Rate Increased to 7.5%
Purpose of Transfer Strengthen govt’s fiscal position

Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

Recent Posts

Elon Musk Becomes World’s First Trillionaire After SpaceX IPO

Elon Musk has created history as he become the world’s first trillionaire after the highly…

14 minutes ago

Odisha Cabinet Approves Renaming of 64 Places to Preserve Odia Identity

State Government of Odisha have approved the restoration of the original Odia names for 64…

36 minutes ago

What is Varya? India’s New AI Video Model Promises Faster and Cheaper Content Creation

Avataar, which is an AI-native transformation company launch the Varya. It is an indigenous AI-powered…

56 minutes ago

Centre Proposes Unified Broadcasting Rules for TV and Radio Services

The Government of India has released the draft Telecommunications (Television, Radio and Associated Services) Rules…

1 hour ago

India Leads Global Digital Wallet Downloads in 2025 as UPI Drives Digital Payments Revolution

According to a recent Sensor Tower report, India has emerged as the world's largest market…

2 hours ago

DRDO Successfully Tests Ballistic Missile Defence and NASM-MR Missile

Defense Research and Development Organization (DRDO) has successfully conducted three consecutive missile tests on 10th…

2 hours ago