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RBI Transfers Record ₹2.69 Lakh Crore to Government, Boosting Fiscal Position

The surplus transfer, driven by robust dollar sales and forex gains, is set to reduce the fiscal deficit to 4.2% of GDP and provide additional spending capacity.

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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.