RBI may pay Rs 2.5 lakh crore dividend: The Reserve Bank of India (RBI) is expected to give a record-high dividend of around ₹2.5 lakh crore to the central government for the financial year 2024–25. This amount would be higher than last year’s dividend of ₹2.1 lakh crore and much more than the government’s own estimate of ₹2.2 lakh crore.
If this happens, it will help the government manage its finances better, especially at a time when it is planning to spend more to boost the economy. A larger dividend means the government won’t have to borrow as much money from the market, which helps reduce the fiscal deficit (the gap between how much the government earns and how much it spends). This also improves liquidity in the banking system and lowers bond yields, which is good for the overall financial market.
Why will the RBI give such a large dividend?
There are two main reasons:
- Dollar Sales: The RBI sold a large amount of US dollars to stop the rupee from falling in value. These sales brought in a lot of income for the RBI.
- Interest from Loans to Banks: The RBI gave funds to banks to manage liquidity (money supply), and earned interest from these operations.
Some economists believe the dividend could even go up to ₹3.5 lakh crore, which would be the highest payout ever from the RBI. The exact amount is likely to be announced in May 2025.
Economists said that large dividend would help the government deal with lower tax collections caused by the slow economy. It would also bring more liquidity into the financial system, which would push bond yields down, especially for short-term bonds. The RBI’s heavy dollar sales and loans to banks have increased its income. That’s why the dividend payout is expected to be quite large — somewhere between ₹2.5 lakh crore and ₹3.5 lakh crore.
Analysts who studied the RBI’s financial records found that the central bank earned more than last year — not just from dollar sales and interest income, but also from profits on investments.
Last 5 year data of Dividend Transfer by RBI to Government
| Year | Dividend (In Crs) |
| FY24 | Rs 2,10,874 |
| FY23 | Rs 87,416 |
| FY22 | Rs 30,307 |
| FY21 | Rs 99,122 |
| FY20 | Rs 57,128 |
| FY19 | Rs 1,75,988 |
As shown in the above table, the dividend has increased manifolds from FY24. The dividend in FY24 was approximately 2.5 times the dividend of FY23.
