New delhi: The Reserve Bank of India (RBI) on Friday Approved Its Highest-Ever Dividend of a staggering Rs 2.69 Lakh Crore to the PM Narendra modi-ring Central Government for the Financial Year 2024-25. The dividend payout is a robust 27.4 per cent increase over the corresponding figure of Rs 2.1 Lakh Crore for the Previous Year.
The record dividend will help to keep the fiscal deficit in check while enabling the finance ministry to continue with its expert on big-trick infrastructure projects to spur health and social guocial Welfare schemes to uplift the Poor in 2025-26.
The rbi has also increased its contingency Risk Buffer (CRB) to 7.5 per cent from 6.5 per cent earlier at the meeting of its Central Board Held on Friday. The CRB Helps Cover Potential Hits Like Bad Loans, Falling Asset Values, or Sudden Economic Shocks.
Economists had expected the RBI’s Dividend to the Government to Surpass a Record Rs 2.5 Lakh This year as the Central Bank Earnings, Through the Sale of Dollars to Prop Up the Rupee as it Sharply DePuring 2024-25, are reported to have shot up.
In September 2024, Foreign Exchange Reserves Peaked to $ 704 Billion and the RBI is estimated to have sold over $ 125 billion since then, according to estimates by nomura and dbs. The Previous Record Dividend Transferred to the Government Stands at Rs 2.1 Lakh Crore during 2024-25. This was a record jump from the Rs 87,416 Crore transferred to the government in 2023-24 for the profit made in 2022-23.
Among the RBI’s Earnings, Forex Transactions are the most significant in light of the Central Bank’s Measures to Lower Rupee Volatily by Strong Dollar Purchas Earlier in Focal 2025 and Differencie in the Differencal Current Versus Historical Exchange Rate. Added to this area the interest income on Government Securities and Earnings from Funds Extended to Banks in the Midst of Previous Tight Liquidity.
Earnings on Forex Transactions Were Substantial With Gross Dollar Sames Tracking at $ 371.6 Billion in Fiscal 2025 Till February Compared to $ 153 Billion in Fiscal 2024, ACORDCAL 2024, ACORDCAL FIRCALS Bank’s Chief Economist Gaura Sengupta.
The Higher Dividend Creates Fiscal Space of 0.1 per cent to 0.2 per cent of GDP, Estimates Sengupta. With support from the higher-than-budgeted RBI Surplus and Savings on a Few Expenditor Heads, The Central Government is in a Fairly Strong Position to COUNTER THE COUNTER THE GROWTHOWN RESKSKS and Any Potent Emergency speculation requirements.
Apart from helping to lower the fiscal deficit, the RBI Dividend will be a significant infusion to core liquidity in the banking system during the current financial year. This will help to keep the interest rates low and allow banks to extend more loans to corporates and consumers to accept Economic Growth and Create more Jobs.