{"id":48004,"date":"2025-05-24T15:18:51","date_gmt":"2025-05-24T09:48:51","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=48004"},"modified":"2025-05-29T16:19:18","modified_gmt":"2025-05-29T10:49:18","slug":"rbi-dividend","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/rbi-dividend\/","title":{"rendered":"RBI Dividend"},"content":{"rendered":"<h2>RBI Dividend Latest News<\/h2>\n<p>The Reserve Bank of India (RBI) has approved the transfer of a \u20b92.69 lakh crore surplus to the Union Government as dividend for the financial year 2024-25.<\/p>\n<h2>What is a Dividend in Public Finance?<\/h2>\n<ul>\n<li>A\u00a0<strong>dividend<\/strong>\u00a0refers to a\u00a0<strong>portion of profits<\/strong>\u00a0returned by a corporation or institution to its\u00a0<strong>shareholders<\/strong>; in the case of the RBI, the\u00a0<strong>Government of India<\/strong>\u00a0is the sole shareholder.<\/li>\n<li>Dividends are a\u00a0<strong>non-tax revenue<\/strong>\u00a0source for the government and help in\u00a0<strong>bridging fiscal deficits<\/strong>.<\/li>\n<li>RBI dividends are governed by the\u00a0<strong>Reserve Bank of India Act, 1934<\/strong>\u00a0and are subject to approval by the\u00a0<strong>RBI Central Board<\/strong>.<\/li>\n<li><strong>Dividend Yield<\/strong>\u00a0measures the\u00a0<strong>return from dividends<\/strong>\u00a0relative to the\u00a0<strong>stock price<\/strong>, calculated as:\n<ul>\n<li><strong>Dividend Yield = (Annual Dividend per Share) \/ (Current Market Price of Share)<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>Although\u00a0<strong>private dividends<\/strong>\u00a0require shareholder approval, RBI\u2019s transfer is a\u00a0<strong>policy-based institutional mechanism<\/strong>.<\/li>\n<\/ul>\n<h2>Why Did RBI Earn Higher Surplus in 2024-25?<\/h2>\n<ul>\n<li>The\u00a0<strong>higher surplus<\/strong>\u00a0in 2024-25 is attributed to:\n<ul>\n<li><strong>Increased sale of foreign exchange reserves<\/strong>, especially in\u00a0<strong>January 2025<\/strong>, when the RBI was the\u00a0<strong>top seller among Asian central banks<\/strong>.<\/li>\n<li><strong>Higher interest income<\/strong>\u00a0from investments in\u00a0<strong>government securities and foreign assets<\/strong>.<\/li>\n<li><strong>Gains from forex transactions<\/strong>\u00a0amid volatility in global markets.<\/li>\n<\/ul>\n<\/li>\n<li>This is\u00a0<strong>27% higher<\/strong>\u00a0than the\u00a0<strong>\u20b92.10 lakh crore<\/strong>\u00a0dividend transferred in the\u00a0<strong>previous year<\/strong>\u00a0(2023-24), indicating a sharp rise in RBI\u2019s earnings.<\/li>\n<li>The\u00a0<strong>transferable surplus<\/strong>\u00a0was calculated as per the\u00a0<strong>Revised Economic Capital Framework (ECF)<\/strong>, approved on\u00a0<strong>May 15, 2025<\/strong>.<\/li>\n<li>The\u00a0<strong>ECF<\/strong>\u00a0determines how much surplus RBI can safely transfer while keeping enough capital to\u00a0<strong>absorb financial shocks<\/strong>.<\/li>\n<\/ul>\n<h2>RBI Dividend FAQs<\/h2>\n<p><strong>Q1:\u00a0<\/strong>What is the RBI Dividend?<br \/>\n<strong>Ans:<\/strong>\u00a0RBI Dividend refers to the surplus profit that the Reserve Bank of India transfers to the Central Government, after meeting its operational expenses and contingency provisions.<\/p>\n<p><strong>Q2:\u00a0<\/strong>Under what legal provision does RBI transfer dividends?<br \/>\n<strong>Ans:<\/strong>\u00a0The transfer is made under Section 47 of the RBI Act, 1934, which mandates that any surplus from RBI&#8217;s operations be transferred to the Government.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.thehindu.com\/business\/rbi-to-transfer-269-lakh-crore-to-govt-as-dividend-raises-crb-to-75\/article69611054.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A dividend refers to a portion of profits returned by a corporation or institution to its shareholders; in the case of the RBI, the Government of India is the sole shareholder.<\/p>\n","protected":false},"author":8,"featured_media":48006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[525],"class_list":{"0":"post-48004","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-rbi-dividend","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/48004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=48004"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/48004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/48006"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=48004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=48004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=48004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}