RBI Surplus
RBI board likely to meet May 23 to decide surplus transfer, say fin min sources
This story was originally published at 13:37 IST on 15 May 2025
Register to read our real-time news.Informist, Thursday, May 15, 2025
--Fin min sources: RBI board likely to meet May 23 to decide surplus transfer
By Priyasmita Dutta
NEW DELHI - The Reserve Bank of India's Central Board of Directors is likely to meet on May 23 to discuss and approve the transfer of surplus to the Centre for financial year 2024-25 (Apr-Mar), two finance ministry officials said. The central bank's board consists of 15 top officials, including Governor Sanjay Malhotra and his four deputies--Rajeshwar Rao, T. Rabi Sankar, Swaminathan J. and Poonam Gupta. Finance Secretary Ajay Seth and Department of Financial Services Secretary M. Nagaraju are also part of RBI's board.
Experts expect the RBI to transfer a record surplus of INR 2.8 trillion to the government for FY25. Last year, the government had received a then-record INR 2.11-trillion from the central bank as surplus. The Union Budget for FY26 pegged the government's income from dividend and surplus from the RBI and state-owned financial institutions and banks at INR 2.56 trillion, higher than the revised estimate of INR 2.34 trillion for FY25.
The RBI's central board will also approve the annual report and accounts of the Reserve Bank for FY25, and decide on the Contingent Risk Buffer level.
The RBI last year raised its Contingent Risk Buffer to 6.5% of its balance sheet, which required an additional transfer of INR 428 billion to its Contingency Fund at the end of FY24. However, most experts do not expect a higher share of provisioning in FY25, which would prevent a fall in the surplus. The RBI's current buffer is at the higher end of the 5.5-6.5% range recommended by the Bimal Jalan Committee, which the central bank adopted into its Economic Capital Framework in 2019. Instead, the provisions may grow in line with the RBI's balance sheet growth in FY25. End
With inputs from Krity Ambey
Edited by Vandana Hingorani
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
