RBI declares 2.87 lakh crore dividend to the Central Government for FY26
Mumbai, May 22
The Reserve Bank of India on Friday approved a transfer of Rs 2.87 lakh crore as surplus to the Central Government for the financial year 2025-26, marking one of the highest dividend payouts by the central bank.
The decision was taken during the 623rd meeting of the Central Board of Directors of the RBI, chaired by Governor Sanjay Malhotra in Mumbai.
"The Central Board approved the transfer of surplus of Rs 2,86,588.46 crore to the Central Government for the accounting year 2025-26," the RBI said in its release.
The RBI said its gross income increased by 26.42 per cent during FY26 compared to the previous year, while expenditure before risk provisions rose 27.60 per cent.
According to the central bank, net income before risk provisions and transfer to statutory funds stood at Rs 3,95,972.10 crore in FY26, up from Rs 3,13,455.77 crore in FY25.
The RBI's balance sheet also expanded by 20.61 per cent to Rs 91,97,121.08 crore as on March 31, 2026.
The central bank said it decided to transfer Rs 1,09,379.64 crore towards the Contingent Risk Buffer (CRB) for FY26, compared to Rs 44,861.70 crore in the previous year, while maintaining the CRB at 6.5 per cent of the balance sheet size.
"The Board reviewed the global and domestic economic scenario, including risks to the outlook," the RBI said.
Deputy Governors Swaminathan J, Poonam Gupta, Shirish Chandra Murmu and Rohit Jain, along with other directors of the Central Board, attended the meeting.
— ANI
Reader Comments
This is excellent news! The RBI's prudent management is evident with such a high surplus transfer. However, I'm a bit concerned about the increased expenditure—27.6% rise in one year is quite steep. Hope the central bank is keeping inflation in check too.
Taking so much dividend from RBI—yaar, it feels like the government is squeezing the central bank dry. 2.87 lakh crore is huge, but what about the common man? Petrol prices are still high, and inflation is eating our savings. Bhai, use this money to reduce GST or something!
Good to see the RBI's balance sheet growing by 20.61%—shows the economy is on a solid footing. The Contingent Risk Buffer being maintained at 6.5% is prudent. But I hope this dividend doesn't lead to reckless spending by the government. Fiscal discipline is key! 🇮🇳
As an economist, I find this payout significant. It's one of the highest dividends in RBI's history, likely due to higher forex gains and domestic interest income. But transferring such a large surplus to the government could reduce the RBI's ability to manage future crises. Just a thought.
This reminds me of similar moves by other central banks. India's economy is growing, and this dividend shows strong monetary management. However, I worry about the government's reliance on such one-time transfers for budgetary support. Sustainable revenue generation would be better.
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