The Business Factors News Desk
Mumbai, May 23 (2025): The 616th meeting of the Central Board of Directors of the Reserve Bank of India was held today at Mumbai under the Chairmanship of Governor Sanjay Malhotra.
The Board reviewed the global and domestic economic scenario, including risks to the outlook. The Board also discussed the working of the Reserve Bank during the year April 2024 – March 2025 and approved the Reserve Bank’s Annual Report and Financial Statements for the year 2024-25.
The transferable surplus for the year (2024-25) has been arrived at on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board in its meeting held on May 15, 2025. The revised framework stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of the RBI’s balance sheet.
During accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of the Covid-19 pandemic, the Board had decided to maintain the CRB at 5.50 per cent of the Reserve Bank’s Balance Sheet size to support growth and overall economic activity.
The CRB was increased to 6.00 per cent for FY 2022-23 and to 6.50 per cent for FY 2023-24. Based on the revised ECF and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 per cent. The Board thereafter approved the transfer of ₹2,68,590.07 crore as surplus to the Central Government for the accounting year 2024-25.
Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., Dr. Poonam Gupta and other Directors of the Central Board – Ajay Seth, Secretary, Department of Economic Affairs, Nagaraju Maddirala, Secretary, Department of Financial Services, Satish K. Marathe, (Smt) Revathy Iyer, Prof Sachin Chaturvedi, Pankaj Ramanbhai Patel and Dr. Ravindra H. Dholakia – attended the meeting.
