RBI Dividend: RBI to pay record ₹2.70 lakh crore dividend to govt for FY25— 27% higher than FY24

The Reserve Bank of India (RBI) will pay as much as ₹2.69 lakh crore—the highest-ever surplus—as dividend to the central government for fiscal 2024-25 (FY25). The central bank announced the record dividend payment on Friday, May 23.

This compares with ₹2.1 lakh crore transferred to the government in the financial year-ended March 2024. RBI's FY25 dividend payment is 27.4 per cent higher than FY24.

The Reserve Bank had transferred ₹2.1 lakh crore dividend to the government for the fiscal 2023-24. The payout was ₹87,416 crore for 2022-23.

The decision on the dividend payout was taken at the 616th meeting of the Central Board of Directors of Reserve Bank of India under the Chairmanship of Governor Sanjay Malhotra.

The board reviewed the global and domestic economic scenario, including risks to the outlook, RBI said in a statement.

The board also discussed the working of the Reserve Bank during the year April 2024 - March 2025 and approved the Reserve Bank's Annual Report and Financial Statements for the year 2024-25.

The transferable surplus for the year (2024-25) has been arrived at on the basis of 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 ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25," it said.

The revised framework stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of the RBI's balance sheet.

Based on the revised ECF, and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 per cent, RBI said.

The RBI makes an annual payout to the government from the surplus income earned from investments and valuation changes on its foreign exchange holdings, including the dollar, and the fees it gets from printing currency notes. 

A bonanza from the central bank will help meet the government’s 4.4% fiscal deficit target for the current financial year by fortifying its finances and offset a shortfall in tax collections due to weak growth. It will also create a cushion for any potential losses from import duty cuts as trade talks proceed. 

Details on how the RBI managed to generate this substantial surplus will be disclosed in its annual report, expected to be released in the coming days.