The transfer of Rs 87,416 crore as excess to the Central government was authorized by the board of the Reserve Bank of India on Friday. The contingency risk cushion was also increased from 5.5% to 6%, the central bank said in a statement.

The RBI gave the government a transfer of Rs 30,307 crore in FY22.

At its 602nd meeting, which was presided over by Governor Shaktikanta Das today, the Central Board of Directors of the RBI made the choice.

"The board approved the transfer of ₹87,416 crore as surplus to the central government for accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6%," the RBI said.

Analysts predicted that the surplus transfer would surpass budget projections because of earnings from significant dollar sales and greater interest income on Treasury assets.

A higher dividend payout is expected to help Prime Minister Narendra Modi's government to meet its target of lowering the fiscal deficit to 5.9% of gross domestic product in the current financial year from 6.4% a year ago.

According to an RBI statement, the Central Board of the RBI evaluated the status of the domestic and international economies, as well as the problems that go along with them, particularly the effects of recent events in world geopolitics. The board also spoke about how the Reserve Bank operated in FY23 and approved the annual report and financial statements for fiscal year 2022–2023.

For the unversed, RBI provides the government with an annual payout derived from surplus income.

The surplus income comes from investments and valuation changes on foreign exchange holdings, including the dollar. and the RBI also earns fees from printing currency notes, contributing to the payout.