The Reserve Bank of India (RBI) has announced a record surplus transfer of ₹2.68 lakh crore to the Central Government for FY2024-25, marking a 27% increase over FY24. This historic payout was approved at the 616th meeting of the Central Board of Directors, chaired by Governor Sanjay Malhotra.
The surplus transfer follows the adoption of a revised Economic Capital Framework (ECF) on May 15, 2025, which now mandates maintaining the Contingent Risk Buffer (CRB) between 4.5% and 7.5% of the RBI’s balance sheet. This is a shift from the earlier 5.5% CRB maintained during 2018–2022 due to COVID-19 and macroeconomic uncertainties.
Economists attribute the large surplus to:
- Forex revaluation gains due to the rupee’s depreciation,
- High returns from government securities,
- Effective liquidity and interest rate management.
The surplus is based on profits from investments, valuation changes in foreign reserves, and other sources, in line with the Bimal Jalan-panel’s ECF recommendations, now modified. Under the new ECF, RBI may transfer all surplus above the 7.5% buffer but withhold transfers if the buffer dips below 4.5%.
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