RBI Transfers Record ₹2.87 Lakh Crore Dividend to Central Government for FY25
The Reserve Bank of India (RBI) approved a record dividend (surplus transfer) of ₹2.87 lakh crore to the Central Government for FY 2024-25. The transfer comes amid rising global energy prices and geopolitical tensions that are putting pressure on India's fiscal position. The dividend will help the government meet its fiscal-deficit target without cutting capital expenditure. This is one of the largest-ever surplus transfers by the RBI.
Key Facts & Details
8 points- 1RBI dividend to Centre for FY25: record ₹2.87 lakh crore
- 2Helps meet fiscal-deficit target amid global headwinds
- 3One of the largest-ever surplus transfers from RBI
Deep Dive
- +RBI's surplus transfer is determined by the Bimal Jalan Committee framework (2019)
- +The framework recommends a Contingency Risk Buffer (CRB) of 5.5%-6.5% of RBI balance sheet
- +RBI Governor Sanjay Malhotra (since December 2024)
- +RBI's accounting year was changed from July-June to April-March from FY 2020-21 onwards
- +RBI was established on 1 April 1935 under the RBI Act, 1934
Exam Focus
Likely MCQ: RBI's surplus transfer to the Government is determined by the framework recommended by which committee? → Answer: Bimal Jalan Committee (2019)
Related Topics
Exam Relevance & Angle
RBI, surplus transfer and Jalan Committee are repeat questions for Banking exams, RBI Grade B, NABARD and UPSC.
Target Exams
Background & Context
The Reserve Bank of India (RBI) transfers its annual surplus (net income after provisions) to the Central Government as a dividend, under Section 47 of the RBI Act, 1934.
The quantum of the surplus transfer is determined by the Bimal Jalan Committee Framework (2019). The framework recommends maintaining a Contingency Risk Buffer (CRB) of 5.5%-6.5% of the RBI's balance sheet to cushion against monetary, credit and financial-stability risks. The remainder is transferred as surplus.
Sanjay Malhotra has been the 26th Governor of the RBI since December 11, 2024, succeeding Shaktikanta Das. The RBI's accounting year was aligned to the government's fiscal year (April-March) from FY 2020-21 onwards (earlier it was July-June).
The RBI was established on 1 April 1935 under the RBI Act, 1934, on the recommendations of the Hilton Young Commission (1926). It was nationalised on 1 January 1949.
Related GK Concepts
Must KnowTest Yourself
1 / 3RBI's surplus transfer to the Central Government is determined by the framework recommended by which committee?
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