RBI board approves record surplus transfer of Rs 2.11 lakh crore to government for FY24

The Reserve Bank of India's Central Board of Directors has sanctioned the transfer of Rs 2.11 lakh crores as surplus to the government for the financial year 2023-24, marking a record high annual surplus transfer. This substantial surplus, approved in the 608th meeting, surpasses initial government expectations and is attributed to increased income from the central bank's forex holdings. The surplus transfer, based on the Economic Capital Framework recommended by the Bimal Jalan committee, reflects the RBI's decision to elevate the Contingent Risk Buffer (CRB) to 6.50% for FY 2023-24, indicating confidence in the economy's resilience and growth prospects. The surplus infusion, anticipated to support government liquidity and subsequent expenditure, is expected to significantly exceed the budgeted dividend revenue of Rs 1.02 lakh crore for FY25. Deputy Governors and other Directors of the Central Board, along with representatives from the Departments of Economic Affairs and Financial Services, attended the meeting where the dividend approval was granted.