May 23, 2025

The Reserve Bank of India (RBI) announced the approval to transfer ₹2,68,590.07 crore as surplus to the Central Government for the 2024-25 accounting year. This decision was taken during the 616th meeting of the Central Board of Directors of the RBI, chaired by Governor Sanjay Malhotra. The surplus transfer was increased based on the revised Economic Capital Framework (ECF) and the macroeconomic assessment. During the years 2018-19 to 2021-22, the Board decided to maintain the Contingent Risk Buffer (CRB) at 5.50% of the RBI's Balance Sheet size to support economic growth. Subsequently, the CRB was raised to 6.00% for the financial year 2022-23 and further to 6.50% for 2023-24. Following the macroeconomic assessment, the Central Board decided to raise the CRB to 7.50% for the fiscal year 2024-25. The surplus transfer amount of ₹2,68,590.07 crore for the 2024-25 accounting year was approved by the Board after reviewing the global and domestic economic scenarios, including associated risks. Additionally, the Board discussed the functioning of the RBI during the period from April 2024 to March 2025 and endorsed the Annual Report and Financial Statements for the year 2024-25. The revised ECF requires the risk provisioning under the CRB to be maintained within a range of 7.50% to 4.50% of the RBI's balance sheet. The meeting, where this decision was made, was attended by Deputy Governors and other Directors of the Central Board, along with Secretaries from the Department of Economic Affairs and the Department of Financial Services. This surplus transfer announcement signifies a strategic move by the RBI to support economic activities and growth, aligning with the prevailing macroeconomic conditions and impacts of the Covid-19 pandemic on the economy.

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Tags: Reserve bank of india, Rbi, Central government, Surplus transfer, Ecf,