The report famous that this vital surplus switch was largely supported by the RBI’s energetic participation within the overseas trade market. In actual fact, the RBI was the biggest vendor of overseas trade reserves amongst Asian central banks in January 2025.
It mentioned “This surplus payout is pushed by strong gross greenback gross sales, increased overseas trade good points, and regular will increase in curiosity earnings”.
The central financial institution took aggressive steps to stabilize the rupee through the yr, together with large-scale greenback gross sales. In September 2024, India’s overseas trade reserves had peaked at USD 704 billion. Following that, the RBI bought a big quantity of {dollars} to keep up foreign money stability.
Gross greenback gross sales through the present monetary yr, until February 2025, stood at a large USD 371.6 billion, a lot increased than USD 153 billion recorded within the earlier yr (FY24). This aggressive promoting helped the RBI guide substantial overseas trade good points, which added to the excess.
Moreover, the RBI earned extra earnings 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) good points on these holdings, the general curiosity earnings noticed a gradual 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 determination to extend its danger buffer.
The Contingent Danger 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 steadiness sheet, as advisable by the central board.
The transferable surplus was calculated beneath the revised Financial Capital Framework (ECF), accepted by the RBI’s Central Board throughout its assembly on Might 15, 2025.
This huge payout is a windfall for the federal government. The Union Finances for 2025-26 had projected a complete dividend earnings of Rs 2.56 lakh crore from the RBI and public sector monetary establishments. With this newest switch, the precise quantity might be a lot increased than the price range estimates.
