RBI Approves Record ₹2.69 Lakh Crore Surplus Transfer to Government for FY25

In a major fiscal development, the Reserve Bank of India (RBI) has approved a record surplus transfer of ₹2.69 lakh crore to the central government for the financial year 2024–25. The decision was taken during the 616th meeting of the RBI’s Central Board held on Friday.

The surplus transfer, totalling ₹2,68,590.07 crore, is the highest-ever payout by the central bank to the government, significantly exceeding last year’s transfer of ₹2.1 lakh crore. The move is expected to provide the Centre with substantial fiscal headroom to meet rising expenditure needs amid ongoing development initiatives and economic support measures.

In an official statement, the RBI said, “The Board thereafter approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.” The decision follows a comprehensive review of the global and domestic macroeconomic environment and related risks.

The Central Board also reviewed the operations of the RBI for the year April 2024 to March 2025 and approved the central bank’s Annual Report and Financial Statements for the same period.

Contingency Risk Buffer Increased to 7.5%

During the meeting, the Board deliberated on the Contingency Risk Buffer (CRB), which is a provision maintained to absorb unexpected future shocks. The CRB was maintained at 5.5% between FY2019 and FY2022, primarily in view of the Covid-19 pandemic. It was later raised to 6% in FY2022–23 and to 6.5% in FY2023–24.

Citing the revised Economic Capital Framework and current macroeconomic conditions, the RBI announced a further increase in the CRB to 7.5%.

Fiscal Implications

The record surplus transfer is likely to ease fiscal constraints for the government at a time when public expenditure is projected to rise. The additional funds are expected to support allocations in infrastructure, welfare schemes, and economic stimulus packages, aiding the Centre in maintaining economic momentum amid global uncertainties.