RBI's Strong Dividend to Govt Boosted by USD Sales, Interest Income

The Reserve Bank of India's record dividend payout of nearly Rs 2.7 trillion to the government has been made possible due to robust gross dollar sales, higher foreign exchange gains, and steady increases in interest income, according to a report by the State Bank of India (SBI).

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The report noted that this significant surplus transfer was largely supported by the RBI's active participation in the foreign exchange market. In fact, the RBI was the largest seller of foreign exchange reserves among Asian central banks in January 2025.

It said "This surplus payout is driven by robust gross dollar sales, higher foreign exchange gains, and steady increases in interest income".

The central bank took aggressive steps to stabilize the rupee during the year, including large-scale dollar sales.