The Central Bank's Contribution
RBI Annual Report 2024-25 · rbi.org.inHow the Reserve Bank of India generates a surplus — and what it transfers to the government
The RBI is not a money-printing ATM for the government — but it does transfer a surplus each year. This surplus comes from three main sources: interest income on the government securities it holds, gains from foreign exchange operations, and seigniorage from currency issuance. The FY24-25 transfer of ₹2.68 lakh crore was the largest in history, driven primarily by revaluation gains on forex reserves as the RBI sold dollars into a weakening rupee market.
RBI Surplus Transfer FY24-25
₹2.69L Cr
Highest ever dividend to GoI
▲ 27.4% vs prev. year
Forex Intervention (FY24-25)
$371.6 bn
Gross sales in spot market
Key source of RBI gains
Rupee Securities (portfolio)
₹15.6L Cr
RBI holdings of G-secs
Via OMOs & SLR
Cash Reserve Ratio
4.0%
Of NDTL · as of Apr 2026
▼ Cut 50 bps in FY25
RBI Surplus Transferred to GoI · ₹ Crore · FY16–FY25
How the RBI Earns Its Surplus · FY24-25 approx. breakdown
Forex gains (sold $371.6 bn)
42%
Interest on rupee securities
34%
Earnings on foreign securities
18%
Currency note printing fees
4%
Other income
2%
What Counts as "Money Printing" — and What Doesn't
Surplus transfer (dividend)
NOT printingThe RBI transfers profit from operations to the government. No new money created.
Open Market Operations (OMO)
TECHNICALLY YESRBI buys government bonds in the secondary market, injecting liquidity. Sterilised OMOs offset this.
Monetisation of deficit
YES — if directRBI directly buying government securities at issuance (Ways & Means). India has strict limits on this.