RBI will give a bumper dividend of Rs 2.69 lakh crore to the government

RBI Dividend: The Central Government will be paid a dividend of Rs 2.69 lakh crore from the Reserve Bank of India for the financial year 2025 for the financial year 2025 for the Financial Year 2025. This is more than Rs 2.1 lakh crore given last year.

With this money, the government will help in reducing the slipping deficit by 4.4 percent this year, the liquidity in the banking system will increase. The RBI has also increased its risk buffer from 6.5 % to 7.5 percent, that is, the bank is keeping money separately for any unexpected risk such as the decline in financial market, loss due to economic shock.

3 lakh crore was estimated

In the 616th meeting of the RBI Central Board on Friday, the officials reviewed the economic risks worldwide and in India and approved a dividend transfer of Rs 2,68,590.07 crore to the Modi government.

Earlier it was estimated that RBI could give dividends up to Rs 3 lakh crore this year to the government, which is about 50 percent more than last year. In the union budget, a dividend of Rs 2.56 lakh crore was expected from RBI and other financial institutions.

Why does RBI give dividend?

RBI gives the Government of India dividend every year under the rules of Economic Capital Framework. It was implemented in August 2019, based on the report of the committee headed by former Reserve Bank Governor Vimal Jalan.

The Jalan Committee suggested the RBI to keep the balance sheet 5.5 to 6.5 percent as the risk buffer. After this, the surplus amount is transferred to the government. The government uses this amount to reduce the fiscal deficit, in all development works and to meet its expenses.

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