The report famous that this important surplus switch was largely supported by the RBI’s energetic participation within the international change market. In actual fact, the RBI was the most important vendor of international change reserves amongst Asian central banks in January 2025.
It mentioned “This surplus payout is pushed by strong gross greenback gross sales, greater international change features, and regular will increase in curiosity revenue”. The central financial institution took aggressive steps to stabilize the rupee in the course of the yr, together with large-scale greenback gross sales. In September 2024, India’s international change reserves had peaked at USD 704 billion. Following that, the RBI bought a big quantity of {dollars} to take care of foreign money stability.
Gross greenback gross sales in the course of the present monetary yr, until February 2025, stood at a large USD 371.6 billion, a lot greater than USD 153 billion recorded within the earlier yr (FY24). This aggressive promoting helped the RBI e book substantial international change features, which added to the excess.
Moreover, the RBI earned extra revenue from its rupee securities. The central financial institution’s holdings in rupee securities rose by Rs 1.95 lakh crore to Rs 15.6 lakh crore as of March 2025. Though a decline in authorities securities (G-sec) yields impacted the mark-to-market (MTM) features on these holdings, the general curiosity revenue noticed a gentle rise.The report additional highlighted the RBI’s prudent method in sustaining monetary stability. Whereas the dividend payout stands at Rs 2.7 trillion, it may have exceeded Rs 3.5 trillion if not for the RBI’s resolution to extend its danger buffer.
The Contingent Threat Buffer (CRB), which acts as a safeguard in opposition to future dangers, was maintained inside a spread of seven.5 per cent to 4.5 per cent of the RBI’s stability sheet, as beneficial by the central board.
The transferable surplus was calculated underneath the revised Financial Capital Framework (ECF), accredited by the RBI’s Central Board throughout its assembly on Could 15, 2025.
This massive payout is a windfall for the federal government. The Union Price range for 2025-26 had projected a complete dividend revenue of Rs 2.56 lakh crore from the RBI and public sector monetary establishments. With this newest switch, the precise quantity shall be a lot greater than the price range estimates.
