Syllabus:
GS3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Context:
For the financial year 2024–25, the Reserve Bank of India (RBI) has decided to transfer a record surplus of ₹2.69 lakh crore to the government. This is a record high transfer, 27% higher than the ₹2.11 lakh crore transferred in FY 2023-24.
What is RBI Surplus
Key Factors Behind the Record Surplus
Foreign Exchange Gains: The RBI’s income from foreign exchange transactions rose to ₹1.11 trillion, up from ₹836.16 billion in the previous year. This increase was driven by substantial dollar sales aimed at stabilizing the rupee.
Interest Income from Foreign Assets: Interest earnings from foreign securities climbed to ₹970.07 billion, compared to ₹653.28 billion the previous year, contributing significantly to the RBI’s net income.
Revised Economic Capital Framework (ECF): In May 2025, the RBI’s Central Board approved a revised ECF, adjusting the Contingent Risk Buffer (CRB) range to 6% ±1.5%.
- For FY25, the CRB was set at 7.5%, enhancing the RBI’s financial resilience while allowing for a substantial surplus transfer.