Central Board approved amended ECF on May 15, 2025
A very thick amount is coming in the form of dividend in the central government account. The Reserve Bank of India (RBI) on Friday announced a record dividend of Rs 2.69 lakh crore to the government for FY 2024-25. Let us tell you that this is 27.4 percent more than the dividend given in FY 2023-24. The RBI gave a dividend of Rs 2.1 lakh crore to the government for FY 2023-24. Whereas, in FY 2022-23, RBI gave a dividend of Rs 87,416 crore to the central government. In the 616th meeting of the Central Board of Directors of RBI, it was decided to pay a record dividend to the government. The meeting was chaired by RBI Governor Sanjay Malhotra.
Government will get great help from RBI’s record dividend
Getting a record dividend from the Reserve Bank will help the government deal with increased expenses in defense head due to tariffs imposed by the US and conflict with Pakistan. The RBI said in a statement that the board reviewed the global and domestic economic scenario, including risks related to landscape. During this period, the Board of Directors also discussed the functioning of the Reserve Bank during April 2024-March 2025 and approved the annual report and financial statements of the Reserve Bank for FY 2024-25. The Reserve Bank said, “The Central Board of Directors approved the transfer of Rs 2,68,590.07 crore as a surplus to the Central Government for Accounting Year 2024-25.”
Central Board approved amended ECF on May 15, 2025
The RBI said that the surplus amount to be transferred for FY 2024-25 has been determined on the basis of the revised Economic Capital structure (ECF). The Central Board approved the revised ECF in the meeting held on May 15, 2025. The revised structure provides that the risk provision under contingent risk buffer (CRB) should be maintained within the range of 7.50 to 4.50 percent of the RBI book. RBI said that on the basis of revised ECF and keeping in mind the large-economic assessment, the Central Board of Directors has decided to increase the contingent risk buffer to 7.50 percent.
With PTI inputs
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