The Reserve Bank of India (RBI) has set the financial world abuzz with its announcement of a record-breaking dividend payout of Rs 2.69 lakh crore to the central government for the fiscal year 2024-25. This payout marks a spectacular 27.4% jump from last year’s already impressive Rs 2.1 lakh crore, making it the highest surplus transfer in the central bank’s history. The decision was finalized at the 616th meeting of the RBI’s Central Board of Directors, chaired by Governor Sanjay Malhotra, in Mumbai. The board’s agenda included a comprehensive review of both global and domestic economic scenarios, with a sharp focus on risks and the country’s fiscal outlook. The surplus transfer was calculated under the revised Economic Capital Framework (ECF), approved by the board on May 15, 2025, ensuring robust risk provisioning and financial stability. The Contingent Risk Buffer (CRB), a key safety net for unforeseen shocks, was raised to 7.5% from the previous 6.5%—a move reflecting the RBI’s ca...
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