The Reserve Bank of India (RBI) has approved a dividend payout of ₹268590.07 Crore for FY 2024-25 to the Government of India (GOI) to boost the fiscal scenario of the economy. This is one of RBI’s record dividend payments to the government, and it has jumped by 27.4% compared to the previous year’s (FY24) ₹2.1 lakh crore. The decision was arrived at in the 616th meeting of the Central Board of Directors of the RBI. After scrutinizing the economic scenario, both global and domestic, the board has approved the annual report of the central bank of the country and the financial statements for FY25, in which it has passed the RBI dividend 2025 payment to the GOI.
Economic Capital Framework
Under the modified Economic Capital Framework (ECF), the surplus for the year FY25 had been determined and approved as on 15 May 2025. Under this framework, there is a requirement for Contingent Risk Buffer (CRB). This is a critical risk management component. It is required to be maintained within the range of 4.5% and 7.5% of the balance sheet of RBI.
As per the revised ECF, and after considering the macroeconomic scenario, the RBI’s Central Board increased the CRB to 7.5%.
Record Dividend Payout
In FY25, the RBI’s record dividend is an all-time high dividend payment to the government. Here is the RBI dividend history for the last ten years –
| Financial Year | Dividend Payment |
| FY15 | ₹65,896 crore |
| FY16 | ₹65,876 crore |
| FY17 | ₹30,659 crore |
| FY18 | ₹50,000 crore |
| FY19 | ₹1,75,987 crore |
| FY20 | ₹57,128 crore |
| FY21 | ₹99,122 crore |
| FY22 | ₹30,307 crore |
| FY23 | ₹87,416 crore |
| FY24 | ₹2,10,874 crore |
Economists earlier estimated correctly that the dividend payment would be within the range of ₹2.5 lakh crore and ₹3.5 lakh crore, though.
This massive dividend has come from RBI’s exceptional earnings from foreign exchange operations and also from bond portfolio profits. Here the domestic bond holdings of RBI have helped it generate great deal of profit. It has also generated earnings from interest rate management and active liquidity management.
Wrapping up
This larger than expected dividend payment can help the entire system and also reduce the Open market operations need in the near future. So, it will be interesting to see how the GOI use this dividend received from the RBI and the Impact of RBI dividend to boost the economic growth.
Source: CNBC TV18
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