RBI directors meet in Mumbai, approve over Rs. 2 lakh crore transferable surplus to Central Government

Mumbai: The 616th meeting of the Central Board of Directors of Reserve Bank of India was held in Mumbai under the Chairmanship of Sanjay Malhotra, Governor.

The Board reviewed the global and domestic economic scenario, discussing risks to the outlook. They also reviewed the working of the Reserve Bank for the year April 2024 – March 2025, approving the Annual Report and Financial Statements for the year 2024-25.

The transferable surplus for the year was determined based on the revised Economic Capital Framework (ECF) approved in a previous meeting held on May 15, 2025.

The revised framework specified that the risk provisioning under the Contingent Risk Buffer (CRB) should be maintained within a range of 7.50 to 4.50 percent of the RBI’s balance sheet.

In previous accounting years from 2018-19 to 2021-22, the Board had decided to maintain the CRB at 5.50 percent of the Reserve Bank’s Balance Sheet size due to prevailing macroeconomic conditions and the impact of the Covid-19 pandemic.

The CRB was increased to 6.00 percent for FY 2022-23 and to 6.50 percent for FY 2023-24. Considering the revised ECF and macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 percent.

The Board approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.

Deputy Governors and other Directors of the Central Board, along with officials from the Department of Economic Affairs and Department of Financial Services, attended the meeting.