RBI will transfer a record ₹ 2.69 lakh crore surplus to the government: 28% more than last year, then Rs 2.10 lakh crore was transferred

In FY 2022-23, the government received a surplus of ₹ 87,416 crore.

The RBI Board has approved a record 2.69 lakh crore surplus transfer to the government for FY 2025. In the last financial year 2023-24, RBI transferred a surplus worth 2.10 lakh crore to the government. That is, this is 28% more than the previous year.

This transfer of surplus is for FY25, but it will appear in the government’s account for FY26. The surplus was announced at the 616th meeting of the Central Board of Directors of RBI.

The difference between income and expenditure is surplus

The difference between the income and expenditure of RBI is called surplus. The RBI transfers the surplus to the government after provision and retained earnings for the reserve. According to Section 47 (Alokation of Surplus Profit) of the Reserve Bank of India Act, 1934, it is transferred.

RBI How does the surplus generate? RBI income:

• Interest on holding of domestic and foreign securities
• Fees and commission from services
• Profit from Foreign Exchange Transaction
• Return from subsidiary and associate companies

RBI expenditure:

• Currency notes printed
• Payment of interest on deposit and loan
• Employees’ salary and pension
• Operational expenses of offices and branches
• Sudden money requirement and provision for depression

Most surplus ever

This is the highest annual surplus transfer ever. According to the expert, one of the reasons for the rapid bounce in the surplus amount is the earnings of the Reserve Bank from Forex Holding. Expert said that more surplus is good news for the central government as it will support the liquidity surplus of the Center and then the expenditure.

• This will help the government to reduce its financial deficit
• Government will be able to spend money on new schemes
• Revenue collection is compensated after disinvestment target missed

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