RBI's big decision to approve the transfer of Rs 2.68 lakh crore surplus for FY 2025
RBI: The Central Board of the Reserve Bank of India (RBI) today approved the transfer of a surplus of Rs 2,68,590.07 crore to the Central Government for the accounting year 2024-25.
Today, the 616th meeting of the Reserve Bank of India's Central Board of Directors took place in Mumbai with Reserve Bank Governor Sanjay Malhotra inthe chair. The RBI in this meeting has decided on the transfer of a surplus amounting to Rs 2.68 lakh crore (Rs 2.69 trillion) to the Central Government for the financial year 2024-25 in a key financial move. This is the highest transfer the central bank has ever made and can considerably increase the government's fiscal resources in the current financial year.
The board reviewed the global and domestic economic scenario, taking into account the risks in the outlook. The Board also discussed the functioning of the Reserve Bank during April 2024 to March 2025 and approved the Annual Report and Financial Statements of the Reserve Bank for the year 2024-25. The transferable surplus for the year 2024-25 has been determined on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board in its meeting held on May 15, 2025. The revised framework provides that risk provisions under the Contingency Risk Buffer (CRB) should be maintained within the range of 7.50 to 4.50 per cent of the balance sheet of the RBI.
It was decided to maintain the CRB at 5.50 per cent to maintain economic stability during the COVID-19 pandemic and the years thereafter. Taking into account the CRB for FY 2022-23, the Central Board had decided to further increase the CRB to 7.50 per cent. The Board then approved the transfer of Rs 2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.
No additional surplus transfer will be made until the required minimum level of equity is achieved as per RBI's revised ECF. This policy ensures that the RBI maintains adequate buffers against monetary and financial stability risks. This significant surplus, coupled with the increase in the CRB strikes a balance between supporting government finances and maintaining monetary stability amid evolving economic dynamism.
