By Admin 
The Reserve Bank of India (RBI) has announced a dividend of 2.69 lakh crore to the government for the financial year 2024-25. This is the largest surplus transfer ever which the government has got any year. Earlier in 2023-24, RBI had transferred 2.1 lakh crores to the government in 2.1 lakh crores and 87,420 crore in 2022-23.
Why did the government get this much money?
RBI has earned good earning this time from Forex Assets. Apart from this, the bank has also made a big profit from VRR (Variable Rate Reverse REPO) operations and foreign exchange cells. Not only this, the ups and downs in interest rates in the last financial year also increased the earnings of the Reserve Bank.
What is the benefit to the government?
The government had targeted to raise 2.56 lakh crore from RBI, public sector banks and other financial institutions this year. But getting 2.69 lakh crores from RBI itself is like a bonus for the government. Experts believe that this can provide additional 50,000 to 60,000 crore help to the government. However, this will not change a big change in fiscal deficit i.e. fiscal deficit. It is estimated that the deficit can go down from 4.4 percent to 4.3 percent.
What is CRB and why it was extended?
A contingent Risk Buffer (CRB) is made to protect the RBI balance sheet. Consider it a kind of ‘safety shield’ which helps in dealing with any economic crisis. Earlier it was at 6.5 percent, but now it has been reduced to 7.5 percent. That is, RBI has kept more capital to strengthen its balance sheet. This step has been taken keeping in mind the possible future risks.
What will happen next?
If RBI has more than 7.5 percent ‘Aquity’, then additional money can be transferred to the government. But if this is below the fixed limit, the government will not get any dividend until it regains the minimum capital level.
Also read: Is this coin going to stop? The government was losing crores, was continued in 1973