RBI dividend in FY25 likely at the same level as FY24;

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₹98,000 crore in the first three-quarters of FY2024 and are likely to exceed ₹1.3 trillion by FY24-end. "The Centre expects dividend income from the RBI during FY25 to remain consistent, at the same level or slightly more as compared to the last year," the first person mentioned above said, requesting anonymity. "The dividend from PSBs are expected to be over ₹15,000 crore during FY25," the person added.

The dividend from the RBI is usually released to the Centre in May. During FY24, the government had pegged a 17% higher dividend at ₹48,000 crore from the RBI, public sector banks and financial institutions. However, this target was surpassed with the transfer of ₹87,416 crore as surplus to the Central government for FY2023 by the RBI, which was paid in May 2023 and accounted for in FY2024 by the government.

The dividend payout from public sector banks for FY24 has been around ₹15,000 crore. The vote on the account budget presented in February states that the government expects ₹1.02 trillion in dividends from the RBI and state-owned banks in FY2025 but doesn't give a breakup. Meanwhile, the actual dividend from the RBI and state-owned banks could exceed the budgeted targets during FY25 and help the Centre stick to its fiscal deficit glide path and bring down the fiscal deficit to 5.1% in FY25 or even better it, said the second person mentioned above.

"There is a likelihood that the dividend income will be higher than the provisions made in the vote on account budget, similar to last year when the actual dividend proceeds exceeded the budgeted target," the person added. Spokespersons of the finance ministry and the RBI didn't respond to emailed queries. "RBI dividends are understood to be followed basis recommendations