RBI approves Rs 2.11 lakh crore dividend payout to govt for FY24
The amount is comparable to financial budget (Rs 1.02 lakh crore announced in the Interim Budget for FY2025, including dividends from banks and financial institutions).
![RBI approves Rs 2.11 lakh crore dividend payout to govt for FY24](https://www.psuconnect.in/sdsdsd/rbi_pay15.jpg)
The Central Board of the Reserve Bank of India (RBI) has approved the highest-ever surplus transfer and dividend, of Rs 2.11 lakh crore to the Central government for the FY 24.
The amount is comparable to the financial budget (Rs 1.02 lakh crore announced in the Interim Budget for FY2025, including dividends from banks and financial institutions).
The highest dividend payout is likely to help cater for the FY25 fiscal deficit by around 0.2 per cent of the GDP, analysts said. In the Interim Budget for FY2025, the government had set an ambitious target of bringing down the fiscal deficit target to 5.1 per cent of GDP in FY25 from 5.8 per cent of GDP in FY24.
Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoYIn a press release, the RBI said, “The Board approved the transfer of Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24.” The decision on the surplus transfer was taken during the 608th meeting of the Central Board of Directors of the Reserve Bank of India, held in Mumbai.
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For FY 24, the RBI’s board also decided to increase the Contingent Risk Buffer (CRB) to 6.5 per cent from 6 per cent in 2022-23 as the economy remains robust and resilient. The CRB is the country’s savings for a ‘rainy day’ (a financial stability crisis) which has been consciously maintained with the RBI in view of its role as Lender of Last Resort (LoLR). It is the component of the RBI’s economic capital required to cover its monetary and financial stability, credit and operational risks.
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