RBI Approves Unprecedented Rs 2.69 Lakh Crore Surplus Transfer for FY25

The Reserve Bank of India has announced an unprecedented surplus transfer of Rs 2.69 lakh crore to the central government for the fiscal year 2024-25. This decision, the largest transfer to date, was made at the 616th meeting of the RBI's central board.

The move reflects a significant increase from the Rs 2.1 lakh crore transferred at the end of March 2024. The RBI said the surplus for 2024-25 stands at Rs 2,68,590.07 crore. Previously, between 2018-2022, the board kept the Contingency Risk Buffer at 5.50% to counter macroeconomic challenges, including the COVID-19 pandemic's impact.

Adjustments increased the buffer to 6.00% for 2022-23 and to 6.50% for 2023-24. The board has now decided to elevate it further to 7.50%. Moreover, the meeting reviewed both domestic and global economic landscapes and approved the RBI's annual financial reports. Experts, such as Gaura Sengupta from IDFC FIRST Bank, regard the transfer as aligning with expectations, attributing support to foreign exchange transaction earnings.

(With inputs from agencies.)