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RBI's Central Board Approves Record Rs 2.69 Trillion Surplus Transfer to Government of India for FY25.

Banking & Finance | Dated: 28 May 2025

In May 2025, the 615th meeting of the Central Board of Directors of the Reserve Bank of India (RBI) was held in Mumbai (Maharashtra) under the chairmanship of RBI Governor Sanjay Malhotra. The Central Board approved the transfer of Rs 2,68,590.07 crore (Rs 2.69 trillion) as surplus to the Government of India (GoI) for the Financial Year 2024-25 (FY25).

🎯 Key Highlights:

  • - This amount is 27% higher than the surplus transferred in FY24, which stood at Rs 2.11 trillion.
  • - The substantial surplus is mainly driven by strong earnings from foreign exchange operations, with gross dollar sales reaching USD 399 billion in FY25, more than double the USD 153 billion recorded in FY24.
  • - The Central Board also decided to raise the Contingency Risk Buffer (CRB) to 7.50%, which is the highest end of the newly revised range, based on the updated Economic Capital Framework (ECF).

💡 Other Important Facts:

  • (i) The dividend transfer is expected to reduce the Fiscal Deficit (FD) of the government by nearly 20 basis points (bps) from the budgeted level of 4.4% of Gross Domestic Product (GDP).
  • (ii) Under the revised ECF, RBI has expanded the CRB range from the earlier 5.5-6.5% of the balance sheet (maintained during 2019-2024) to a broader 4.5-7.5% range, effectively setting it at 6% with a flexibility of ±1.5%.
  • (iii) For FY25, the buffer has been set at 7.5%, marking the upper limit of the revised range.

📚 Test Your Knowledge:

Which institution’s Central Board approved a record surplus transfer of Rs 2.69 trillion to the Government of India for FY25 recently?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai