RBI pay Rs 2,68,590.07 crore to the Government as dividend for FY 25

The Reserve Bank of India (RBI) Central Board of Directors has approved a record dividend of Rs 2,68,590.07 crore to the Government of India for the fiscal year 2024-25.

The dividend was approved at the 616th meeting of the RBI's Central Board of Directors in Mumbai on 23 May 2025. Last year, the RBI transferred Rs 2.1 lakh crore to the central government as dividends.

The meeting was chaired by the RBI Governor, Sanjay Malhotra. It was attended by the four Deputy Governors of the RBI - M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J and Dr. Poonam Gupta.

The meeting was also attended by other Board Members- Ajay Seth, Secretary, Department of Economic Affairs;  Nagaraju Maddirala, Secretary, Department of Financial Services; Satish K. Marathe; Revathy Iyer; Prof. Sachin Chaturvedi; Pankaj Ramanbhai Patel; and Dr. Ravindra H. Dholakia.

Rules for deciding the dividend to the Government 

The government of India is the 100 % owner of the RBI, and at the end of every financial year, the RBI transfers its surplus to the central government as dividends.

The RBI decides the dividend amount based on the Economic Capital Framework adopted in August 2019. 

The RBI adopted the Economic Capital Framework on the recommendation of the “Expert Committee to Review the extant Economic Capital Framework of the RBI”. Former RBI governor Bimal Jalan headed the committee.

Changes in the Economic Capital Framework

The RBI recently revised the Economic Capital Framework on 15 March 2025.

According to the revised Economic Capital Framework, the risk provisioning under the Contingent Risk Buffer (CRB) should be maintained within a range of 7.50 to 4.50 per cent of the RBI’s balance sheet. 

In its 616th meeting, the RBI Central Board of Directors increased CRB to 7.50 per cent of the RBI’s balance sheet. 

After making provision for the required CRB requirement, the Board approved a transfer of  2,68,590.07 crore to the Government of India for the fiscal year 2024-25.

About the Central Board of Directors of the RBI 

The Reserve Bank of India Act 1934 provides for a Central Board of Directors.

The Board is the highest decision-making body of the RBI and is responsible for its general supervision.

Members - Maximum 21 members.

The Board consists of:

• RBI Governor and four Deputy Governors of the RBI,
• Ten Directors, nominated by the Central Government; 
• Four Directors, one from each of the four Local Boards of RBI, nominated by the Central Government,
• Two central government officials nominated by the Central Government. 

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