RBI transfers ₹2.69 lakh cr. dividend to government, boosts fiscal strength

This record dividend from the RBI gives the Indian government a major boost and reflects the growing strength and stability of the country’s economy.

The Reserve Bank of India (RBI) has transferred a record ₹2.69 lakh crore to the central government as a dividend for the financial year 2024–25. This is the highest-ever amount transferred by the RBI and is about 27% more than last year.

This amount is higher than what the government had estimated in the Union Budget, where it expected ₹2.56 lakh crore from all public sector units and financial institutions combined. 

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Big increase over the years

In 2016–17, the RBI had given the government about ₹30,000 crore. In just nine years, this has increased nearly nine times, showing the strong financial position of the RBI. Experts believe that in the coming years, this amount could rise to ₹3 to ₹3.5 lakh crore annually.

Helpful for Government spending

Economists say this money will give the government more room to spend on development without increasing borrowing. It will also help reduce the fiscal deficit, which the government wants to keep at 4.4% of GDP this year.

Stronger economy in Global context

This large surplus will also help India deal with external economic pressures, such as increased defence spending due to security concerns or global trade tensions. It shows that India is becoming more self-reliant and financially stable.

Based on new RBI rules

The RBI used its updated Economic Capital Framework (ECF) to decide the dividend amount. As part of this, it has increased its Contingent Risk Buffer (CRB) to 7.5%, to ensure the bank stays strong during economic shocks.

India vs Pakistan: A clear difference

Experts point out that the ₹2.69 lakh crore (around $31 billion) that India received from its central bank is much more than the aid Pakistan gets from the IMF and World Bank. While Pakistan depends on loans from outside, India can manage with its financial strength.