RBI approves mega dividend of ₹2,10,874 crore to Government for FY24

The Central Board of Directors of the Reserve Bank of India (RBI) has approved a record dividend of ₹2,10,874 crore to the Government of India for the financial year 2023-24.

The transferable surplus for FY24 was based on the Economic Capital Framework (ECF) adopted by the central bank in August 2019 on the recommendations of the Bimal Jalan committee, the RBI said in a statement.

During 2018-19 to 2021-22, owing to the prevailing macroeconomic scenario and COVID-19, the board maintained the contingent risk buffer (CRB) at 5.50% of the RBI's balance sheet size to back growth and overall economic activity, it said.

"With the revival in economic growth in FY 2022-23, the CRB was increased to 6%. As the economy remains robust and resilient, the board has decided to increase the CRB to 6.50% for FY 2023-24. The board thereafter approved the transfer of ₹2,10,874 crore as surplus to the Central Government for the accounting year 2023-24," the RBI added.

In FY23, the central government had received ₹87,416 crore as a surplus from the central bank.

The 608th meeting of the Central Board, which took place under chairmanship of RBI Governor Shaktikanta Das, was attended by Deputy Governors M Rajeshwar Rao, Michael Debabrata Patra, Swaminathan J, T Rabi Sankar and other Directors of the Central Board – Revathy Iyer, Satish K Marathe, Anand Gopal Mahindra, Pankaj Ramanbhai Patel, Venu Srinivasan and Ravindra H Dholakia.

Dr Vivek Joshi, Secretary, Department of Financial Services and Ajay Seth, Secretary, Department of Economic Affairs also attended the meeting, the release said.