Windfall for govt as RBI transfers record Rs 2.1 trillion for FY24

The Reserve Bank of India's central board met and decided to transfer a record surplus of Rs 2.11 trillion to the government for the fiscal year 2023-24 (FY24), more than double the Centre's budgeted figure for dividends. This surplus transfer comes despite increasing the contingent buffer to 6.5 per cent, reflecting the RBI's robust financial position. \r

The surplus was attributed to higher income from both domestic and foreign assets in FY24, leading to increased profits. This surplus transfer is expected to significantly bolster the Government of India's resource envelope for FY25, potentially allowing for enhanced expenditures or sharper fiscal consolidation. \r

However, economists note that additional spending may be challenging to implement within the remaining months of the fiscal year. The RBI board, chaired by Governor Shaktikanta Das, reviewed global and domestic economic scenarios, discussed the RBI's performance during FY24, and approved the Annual Report and Financial Statements for the year.