Overview

• The Reserve Bank of India (RBI) approved a record surplus transfer of ₹2.69 lakh crore for FY25, a 27% increase from the previous year.
• This transfer exceeds the government’s budgeted ₹2.56 lakh crore in dividend income from the RBI and public sector financial institutions.
• The surplus was driven by strong dollar sales, foreign exchange gains, and steady interest income from investments.
• The RBI revised its Contingent Risk Buffer range to 4.5%-7.5%, maintaining it at 7.5% for FY25 to enhance financial stability.
• Economists predict the transfer will ease the fiscal deficit to 4.2% of GDP, enabling additional government spending of approximately ₹70,000 crore.