RBI Record Rs 2.69 Lakh Cr Surplus To Govt Will Close Budget Deficit

New Delhi, May 24 (KNN) The Reserve Bank of India announced on Friday its decision to transfer Rs 2.69 lakh crore as surplus to the Union government for the accounting year 2024-25, marking an all-time high amount that represents a 27 percent increase from the previous year. 

This transfer coincides with the central bank's adoption of a revised Economic Capital Framework that provides greater flexibility in maintaining risk buffers amid external economic uncertainties.

The dividend amount, while lower than recent market expectations of Rs 3-3.5 lakh crore, exceeded budget projections by approximately Rs 40-50,000 crore. 

The transfer represents 46.1 percent of the government's non-tax revenue and accounts for 5.29 percent of the Union Budget's total size, both figures reaching historic highs in proportional terms.

The substantial transfer occurred despite the RBI Board's approval of a revised Economic Capital Framework on May 15, 2025, which permits the central bank to maintain higher risk capital reserves. 

This framework adjustment was facilitated by the RBI's balance sheet growth of 6.7 percent to Rs 75.4 lakh crore in 2024-25, with significant contributions from interest receipts and net gains from dollar sales undertaken to support the rupee during periods of currency weakness.

Under the revised framework, the Contingent Risk Buffer will be maintained within a range of 4.5 percent to 7.5 percent of the RBI's balance sheet, expanding from the previous range of 5.5 percent to 6.5 percent established under the 2019 Economic Capital Framework based on Bimal Jalan Committee recommendations. 

For 2024-25, the buffer was set at 7.5 percent, the upper limit of the new range, resulting in Available Realised Equity of Rs 5.78 lakh crore compared to Rs 4.58 lakh crore in the previous year.

SBI Research analysis indicated that maintaining the buffer at the previous 6.5 percent level would have resulted in a dividend transfer of Rs 3.5 lakh crore, demonstrating the framework's impact on transfer amounts. 

The expanded buffer range is designed to provide the central bank with enhanced flexibility to manage monetary and financial stability risks while ensuring appropriate surplus transfers to the government over time.

The RBI emphasised in its official statement that the existing Economic Capital Framework had successfully achieved its objectives of maintaining a resilient balance sheet while ensuring healthy surplus transfers. 

The central bank retained the fundamental principles of the framework while implementing targeted modifications to address emerging balance sheet risks and provide requisite year-on-year flexibility in risk buffer maintenance.

(KNN Bureau)