NEW DELHI: The Reserve Bank of India (RBI) is expected to declare on Friday the dividend amount it will transfer to the central government for the fiscal year 2024-25, with indications pointing to a payout higher than the record Rs 2.1 lakh crore disbursed for 2023-24. This previous figure more than doubled the Rs 87,416 crore dividend paid for the 2022-23 fiscal, marking a significant increase in government receipts from the central bank, as reported by PTI.The decision is likely to be finalised at the RBI’s Central Board of Directors meeting scheduled for May 23. Last week, the Board reviewed the Economic Capital Framework (ECF), which serves as the basis for determining the surplus transfer to the government. This framework was adopted in August 2019 following recommendations from the Bimal Jalan-led Expert Committee, which advised maintaining the Contingent Risk Buffer (CRB) between 5.5 to 6.5 perc ent of the RBI’s balance sheet.The Union Budget for 2024-25 projects a dividend income of Rs 2.56 lakh crore from the Reserve Bank and other public sector financial institutions, reflecting expectations of sustained or increased payouts.The surplus transfer is influenced by the RBI’s economic conditions and risk buffers, which ensure the central bank’s financial health while supporting government finances.Meanwhile, on the monetary policy front, Morgan Stanley’s recent report highlighted that the RBI might pursue steeper interest rate cuts to support a slowing economy, potentially lowering the repo rate to 5.5 per cent amid controlled inflation. The central bank is also expected to use other tools, including regulatory easing and ensuring sufficient liquidity, to encourage credit growth.Furthermore, as per the RBI’s May Bulletin, India is increasingly seen as a “connector country” in global trade, especially in technology and pharmaceuticals, which positions the economy well despite ongoing global uncertainties such as trade frictions and weak consumer sentiment.