The Central Board of Directors of the Reserve Bank of India (RBI) on Thursday reviewed the Economic Capital Framework (ECF), which determines the quantum of surplus or dividend transferred to the government.
The review took place during the 615th meeting of the Central Board, held in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra. The ECF, adopted on August 26, 2019, is based on the recommendations of the Bimal Jalan-led expert committee. It includes guidelines for maintaining the Contingent Risk Buffer (CRB) between 6.5% and 5.5% of the RBI’s balance sheet.
This review comes on the heels of a record ₹2.1 lakh crore dividend payout by the RBI to the Centre for FY 2023–24, up from ₹87,416 crore in the previous year. A decision on this year’s surplus transfer is expected at the next board meeting scheduled for May 23.
The Union Budget has projected a dividend income of ₹2.56 lakh crore from the RBI and public sector financial institutions for FY 2024–25.
The meeting was attended by Deputy Governors M Rajeshwar Rao, T Rabi Sankar, Swaminathan J, and Poonam Gupta, along with board members including Economic Affairs Secretary Ajay Seth and Financial Services Secretary Nagaraju Maddirala.
About RBI
Reserve Bank of India, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian currency. Owned by the Ministry of Finance, Government of the Republic of India, it is responsible for the control, issue, and maintenance of the supply of the Indian rupee. It also manages the country’s main payment systems and works to promote its economic development.
