Gains from dollar sales, interest income key factors for higher RBI dividend

The Reserve Bank of India on Friday announced a record Rs 2.69 lakh crore dividend to the government for FY25

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MUMBAI: Substantial gains from US dollar sales and interest income from securities prompted the RBI to announce a record Rs 2.7 lakh crore annual dividend to the central government, according to analysts. The Reserve Bank on Friday announced a record Rs 2.69 lakh crore dividend to the government for FY25, helping the exchequer to tide over challenges posed by US tariffs and increased spending on defence due to the conflict with Pakistan. The decision on the dividend payout was taken at the 616th meeting of the Central Board of Directors of Reserve Bank of India held here under the Chairmanship of Governor Sanjay Malhotra.

The central bank has transferred Rs 2.1 lakh crore dividend to the government for the fiscal 2023-24. The payout was Rs 87,416 crore for 2022-23.