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RBI Approves Rs. 2.68 Lakh Crore Surplus Transfer to Centre

  • 24 May 2025

On 24th May 2025, the Reserve Bank of India (RBI) Board, chaired by Governor Sanjay Malhotra, approved a record transfer of Rs. 2.68 lakh crore as surplus to the Central Government for the financial year 2024–25.

Key Points

  • Historic Transfer: This is the highest-ever surplus transfer by RBI to the government, expected to significantly bolster fiscal resources amid economic pressures.
  • Board Meeting: The decision was made during the Board of Directors’ meeting held in Mumbai, where domestic and global economic trends were also reviewed.
  • Annual Report Approved: The Board approved the RBI’s Annual Report and Financial Statements for FY 2024–25.
  • Economic Capital Framework (ECF): The surplus was calculated under the revised ECF, which now requires a Contingent Risk Buffer (CRB) of 5.50%–7.50% of the RBI balance sheet.
  • CRB Raised: For FY 2024–25, the CRB was increased to 7.50%, reflecting a more cautious approach to risk management.
  • Fiscal Impact: The surplus will aid the Central Government's fiscal management, possibly providing room for more public spending or fiscal consolidation.