CURRENT AFFAIRS | 23 MAY 2026
The Reserve Bank of India’s Central Board on 22 May 2026 approved a transfer of ₹2.86 lakh crore as surplus to the Government of India for accounting year 2024-25 — the highest dividend ever paid by the central bank, surpassing the previous record of ₹2.10 lakh crore in FY24. The Contingent Risk Buffer was maintained at the upper end (7.5%) of the revised Economic Capital Framework band. For CLAT 2027 aspirants this story binds together Section 47 of the RBI Act 1934, the Bimal Jalan Committee architecture, and Article 112 of the Constitution — a classic GA + Legal Reasoning passage waiting to happen.
Constitutional & Statutory Framework
- Section 47, RBI Act 1934: Mandates transfer of surplus profits to the Central Government after provisioning for bad debts, depreciation and the Contingency Fund.
- Article 112: Annual Financial Statement (Union Budget) laid before Parliament — RBI dividend is a major non-tax revenue line item.
- Bimal Jalan Committee (2019): Architect of the current Economic Capital Framework (ECF); reviewed and revised in 2024 widening the CRB band to 6.5–7.5%.
- FRBM Act 2003: Higher non-tax receipts ease pressure on fiscal-deficit targets.
Why this matters for CLAT 2027
This story is a high-probability question source for the General Knowledge & Current Affairs section. Expect MCQs on (i) the statutory basis of the RBI dividend, (ii) the Jalan Committee, (iii) fiscal federalism implications, and (iv) the difference between tax and non-tax revenue. Legal Reasoning passages may anchor on RBI’s autonomy and the Centre–RBI relationship under the RBI Act.
Key Facts at a Glance
| Item | Detail |
|---|---|
| Surplus transfer (FY25) | ₹2.86 lakh crore (record) |
| Previous record (FY24) | ₹2.10 lakh crore |
| Statutory basis | Section 47, RBI Act 1934 |
| CRB maintained at | 7.5% (upper end of revised band) |
| Framework | Revised Economic Capital Framework (post-2024) |
| Decision body | RBI Central Board (chaired by Governor Sanjay Malhotra) |
Mnemonic — “47-J-7.5”
47 = Section 47 of RBI Act (statutory basis). J = Jalan Committee (ECF architect). 7.5 = CRB held at 7.5% upper-band. Remember 47-J-7.5 and you have the entire fiscal-federalism logic of the record dividend.
Practice Quiz — 10 CLAT-Style Questions
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