RBI’s strong dividend for the government stimulated by dollar sales, interest income: SBI Report

The dividend payment of the Reserve Bank of India of almost £ 2.7 trillion to the government has been made possible for robust gross dollar sales, higher exchange rate wines and steady increase in interest income, according to a report from the State Bank of India (SBI).

The report noted that this significant surplus transfer was largely supported by the active participation of the RBI on the Veviezenmarkt. In fact, in January 2025, the RBI was the largest seller of foreign exchange reserves among Asian central banks. It stated: “This surplus payout is powered by robust gross dollar sales, higher profit profits and steady interest income”. The central bank took aggressive steps to stabilize rupees during the year, including large -scale dollar sales.

In September 2024, India’s Veviezen reserves had reached a highlight at $ 704 billion. After this, the RBI sold a large number of dollars to maintain currency stability. Gross -Dollar selling during the current financial year, until February 2025, was a huge $ 371.6 billion, much higher than $ 153 billion registered in the previous year (FY24). This aggressive sale helped the RBI book of substantial exchange rate profits that contribute to the surplus.

Moreover, the RBI earned more income from its rupice effects. The participations of the Central Bank in rupid effects rose by £ 1.95 Lakh Crore to £ 15.6 Lakh Crore from March 2025. Although a decrease in the returns on the government effects (G-SEC) had the profit on this participation (MTM) on these companies, the overall interest income has been increased. The report also emphasized the cautious approach to RBI when maintaining financial stability. Although the dividend payment is £ 2.7 trillion, it could exceed £ 3.5 trillion, if not for the decision of the RBI to increase its risk fugger.

The conditional risk fuger, which acts as a protection against future risks, was maintained within a reach of 7.5 percent to 4.5 percent of the RBI balance, as recommended by the Central Council. The transferable surplus was calculated in the context of the revised economic capital framework, approved by the Central RBI Council during his meeting on 15 May 2025. This large payment is a windfall for the government. The Budget of the Union for 2025-26 had projected a total dividend income of £ 2.56 Lakh Crore from the financial institutions of the RBI and the public sector. With this last transfer, the actual amount will be much higher than the budget estimates.

More so

Published on May 24, 2025