RBI would transfer ₹2.69 lakh crore to government through dividend.

• The Central Board of Directors of the Reserve Bank of India (RBI) approved the transfer of ₹2,68,590.07 crore surplus to the Union government as dividend for the accounting year 2024-25.

• The increase is 27% more than the previous year’s dividend of ₹2,10,874 crore.

• The board decided to increase the Contingent Risk Buffer (CRB) to 7.50% based on revised Economic Capital Framework (ECF) and macroeconomic assessment.

• The CRB was maintained at 5.50% of RBI’s balance sheet size during 2018-19 to 2021-22 due to macroeconomic conditions and the COVID-19 pandemic.

• The RBI’s decision to raise the risk buffer is seen as a prudent move, as the dividend transfer could have topped ₹3.5 trillion.