New Delhi, May 26 -- On Friday last, the Reserve Bank of India (RBI) announced its decision to transfer a record surplus of nearly Rs.2.7 trillion for 2024-25 to the Indian government's coffers. The sum of Rs.2,68,590.07 crore transferred is loosely referred to as the central bank's 'annual dividend,' but since it is not a commerce entity, this is actually the 'surplus' of its income over expenditure.

It is 27% higher than the previous year's figure, despite an enlarged contingency risk buffer (CRB), as stipulated by the revised Economic Capital Framework (ECF) approved by RBI's Central Board. As against a CRB of 5.5-6.5% laid down by a panel led by former governor Bimal Jalan half a decade ago, the range has been widened to 4.5-7.5% of ...