RBI Dividend Announced! Reserve Bank of India Approves Record Rs 2.69 Lakh Crore Payout to Government of India

RBI Dividend to Government 2025: The Reserve Bank of India (RBI) announced on Friday that it will transfer a record surplus of Rs 2.69 lakh crore to the central government for the fiscal year 2025. This amount surpasses the Rs 2.1 lakh crore and Rs 87,420 crore paid to the government in the fiscal years ending March 2024 and 2023, respectively.

RBI Dividend 2025 To Modi Government

The Reserve Bank of India's Central Board of Directors on Friday approved the transfer of a substantial sum of Rs 2,68,590 crore to the government for FY25, marking a 27 percent increase compared to Rs 2,10,874 crore transferred in FY24.

The RBI said in a press release, "The Board thereafter approved the transfer of Rs 2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25." The board assessed both global and domestic economic conditions, along with potential risks to the economic outlook.

RBI Revises Contingent Risk Buffer Range

This announcement comes alongside the expansion of the Contingent Risk Buffer (CRB) range under the updated Economic Capital Framework (ECF), which has been adjusted to 4.50 to 7.50 per cent of the RBI's balance sheet, up from the previous range of 5.50 to 6.50 per cent. The CRB covers provisions for risks related to monetary and financial stability.

The surplus amount available for transfer in the fiscal year 2024-25 has been calculated based on this revised Economic Capital Framework, which was approved by the Central Board during its meeting on May 15, 2025.

According to the updated framework, the CRB's risk provisions are required to be maintained within a band of 4.50 to 7.50 per cent of the RBI's balance sheet.

During its 616th meeting held on Friday in Mumbai, the Central Board evaluated the global and domestic economic conditions along with potential risks to the outlook and resolved to transfer a surplus of Rs 2,68,590.07 crore to the government of India.

RBI Dividend Payout to Government: What are Experts' View?

"RBI's FY25 dividend payout to the government is projected to increase, fuelled by higher income from forex reserve deployments due to elevated US treasury yields," ICICI Research Report stated.

"RBI dividend of Rs. 2.69 lakh is lower than market expectation of Rs 3 lakh crores. This is due to RBI revising its contingent liquidity buffer to 4.5 to 7.5 percent. RBI board has increased its contingent reserve buffer to 7.5 percent, due to which this amount is lower than Rs. 3 lakh crores which was the market expectation. This is a disappointment for the market, and we can expect some profit booking after the steep rally which we saw in the last 10 days," said Murthy Nagarajan, Head of Fixed Income at Tata Asset Management.

Analysts had estimated the surplus transfer to be between Rs 2.5 lakh crore and Rs 3.5 lakh crore for the year. The RBI's annual payment to the government comes from the surplus income generated through its investment earnings, currency printing fees, and valuation adjustments on its foreign exchange reserves.