The  Board of Reserve Bank of India (RBI) has approved a surplus transfer of 874.16 billion Indian rupees to the government of India for the fiscal year ended March 31, the central bank said in a statement on Friday, May 9.

The government had budgeted a dividend of 480 billion rupees for fiscal year  2023 from the Reserve Bank of India  , state-run banks and other financial institutions. The Reserve Bank board also decided to raise the Contingency Risk Buffer (CRB) to 6% from 5.50% previously.  In THE the fiscal year 2022, the RBI transferred 303.07 billion rupees to the government.

Analysts had expected that the surplus transfer would significantly surpass budget predictions due to earnings from significant dollar sales and higher interest income on foreign and domestic treasury holdings.

However, due to market participants' pricing in a surplus transfer of between 1 and 1.5 trillion rupees, India's benchmark 10-year bond yield increased by 5 basis points to 7.01%.

In its meeting, the RBI Board also discussed the state of the local and international economies, their problems, and the implications of recent geopolitical developments worldwide, the RBI said in its release.

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