RBI Board Reviews Economic Capital Framework; Government Dividend Could Increase Up to ₹3 Lakh Crore

The Reserve Bank of India's central board reviewed the Economic Capital Framework (ECF) on Thursday, which guides risk provisioning and the transfer of surplus funds to the government. Under this framework, the RBI annually transfers dividends to the government. For the financial year 2024-25, estimates suggest the RBI may transfer between ₹2.5 lakh crore and ₹3 lakh crore, potentially setting a new record. This follows the highest-ever surplus transfer of ₹2.11 lakh crore made for the 2023-24 accounting year. The ECF review signals continued strong financial support from the RBI to the government amid evolving economic conditions.