RBI Annual Review Meeting: Possibility of giving dividend up to Rs 3 lakh crore to the government, 50 times more last year

RBI Annual Review Meeting: Possibility of giving dividend up to Rs 3 lakh crore to the government, 50 times more last year Tezzbuzz | 18/05/2025 04:24:18

Rbi annual review meeting: The annual review meeting of the Reserve Bank of India (RBI) is going to be held on 23 May 2025. In this important meeting, RBI will analyze its balance sheet and can decide to transfer the surplus of the financial year 2024–25 to the central government. According to sources, this dividend can reach Rs 3 lakh crore – which will be about 50% more than the previous year.

IDFC First Bank’s chief economist Gaura Sen Gupta believes that this time the RBI can give dividend between 2.6 lakh crore to 3 lakh crore rupees to the government. However, the final amount will depend on how much provision the RBI has kept with them.

The atmosphere is created before the review of ECF

Earlier, on 15 May, the central bank reviewed the Economic Capital Framework (ECF), which was implemented in 2019. Under this framework, it is decided that the RBI can give how much part of its profit to the government as dividend and how much will be reserved to deal with the risks.

Dividend limit will decide the assessment of risk

The Internal Committee of RBI has suggested that (CRB) ie Contingency Risk Fund should be kept between 5.5 percent to 6.5 % of the total balance sheet of the total balance sheet.

This reserved amount is decided in view of the level of economic uncertainties of the country. If the external economic conditions remain unstable, the RBI can keep more funds in the reserve, which can reduce the dividend to the government.

Market expected 2.5 lakh crores

According to Alok Singh, a group of Group Treasury Head of CSB Bank, the financial market is already assuming that the RBI can give a dividend of about Rs 2.5 lakh crore to the government. If the government receives more amount than an estimate, then its impact can be seen on the bond market and there can be fluctuations in bond yields.

Risk provision can live between 40 and 80 thousand crores

IDFC First Bank says that this year the provision made to deal with RBI’s risk can remain equal to or slightly higher as the previous year. This provision in FY24 was Rs 42,800 crore, while this time it has been estimated to be within the range of Rs 40,000 to 80,000 crore.