The Reserve Bank of India's board approved transfer of 2.11 trillion rupees ($25.35 billion) as surplus to the federal government for the fiscal year ended March, it said in a statement on Wednesday.

As per the interim budget estimates for fiscal year 2024/25, the Narendra Modi-led government had budgeted for a dividend of 1.02 trillion rupees from the central bank, state-run banks and other financial institutions.

In FY23, the RBI had transferred 874.16 billion rupees to the government as surplus.

The RBI said the board decided to raise the contingency risk buffer to 6.5% from 6% previously.

($1 = 83.2460 Indian rupees) (Reporting by Swati Bhat; editing by Sudipto Ganguly)