RBI Surplus Transfer: Record Payout to Government for FY25
Why in the news
The RBI was set to pay a record dividend, well above the ₹2.3 lakh crore Budget estimate.
Key facts
- Surplus: income minus expenditure; earned from rupee securities, LAF and MSF, loans to governments and banks, and foreign currency assets.
- Risk provisions: Contingency Fund (market and operational risk) and Asset Development Fund (capex, subsidiaries).
- Section 48: RBI exempt from income and super tax.
- ECF: realised equity 5.5 to 6.5% (Board chose 5.5%); economic capital, which includes CGRA, 20.8 to 25.4%, with excess above the cap transferable.
Past payouts (₹ crore)
| Year | Amount | Year | Amount |
|---|---|---|---|
| FY16 | 65,876 | FY21 | 99,122 |
| FY17 | 30,659 | FY22 | 30,307 |
| FY18 | 50,000 | FY23 | 87,416 |
| FY19 | 1,75,987 | FY24 | 2,10,874 |
| FY20 | 57,128 |
Why it was high and what it gives the Centre
- Better returns on forex reserves, lower provisioning under revised thresholds, strong investment income.
- Cuts deficit, adds non-tax revenue and may trim FY25 borrowing by ₹1 trillion, easing bond yields.
Exam angle
- Committees: Subrahmanyam, Thorat, Malegam, Jalan.
- CGRA: unrealised gains from forex, gold and rates.