RBI dividend 2025: The country's central bank RBI has announced to give a record Rs 2.69 lakh crore as a dividend to the Government of India for FY25. RBI has announced to give 27 percent more dividends to the government this year as compared to last year. But have you ever wondered where RBI gets the money itself from? And why does this institution give a dividend of thousands of crores of rupees to the Government of India every year?

The main work of RBI is to decide the monetary policy of the country, print currency, regulate banks, and manage foreign exchange reserves. RBI earns its income through different sources. Like-

RBI invests in bonds of the Government of India and some foreign governments, from which it earns interest.

When RBI holds dollars or other foreign currencies, they are also put on interest.

When RBI controls the supply of rupees or sells and buys dollars, it also benefits from that.

Fees for certain services from commercial banks are also part of RBI's income.

Despite being a non-profit organization, RBI transfers a large part of the profit it earns to the Government of India. This is called surplus transfer or dividend.

RBI transfers this dividend to the Government of India every year under the rules of the Economic Capital Framework (ECF), which was updated in 2019 on the advice of Bimal Jalan's committee. According to the new rules of ECF, RBI will have to keep 4.5% to 7.5% of its balance sheet as a risk buffer. After this, the remaining amount will be transferred to the government.

The government uses this amount to meet its expenses, fund development work, and reduce fiscal deficit.