RBI likely to transfer record up to Rs 3.5 lakh crore dividend to govt: Report
Mumbai, May 21
The Reserve Bank of India is likely to transfer a record surplus dividend to the government for FY26, with the payout estimated between Rs 2.7 lakh crore and Rs 3.5 lakh crore, a report has said.
NDTV Profit reported that the RBI board is scheduled to meet on Friday to consider the surplus transfer.
If approved at the upper end of estimates, this would mark the highest-ever dividend payout by the central bank to the government.
Last year, the RBI had transferred a record Rs 2.69 lakh crore surplus to the Centre for FY25.
The sharp rise in the expected surplus comes after a year in which the RBI benefited from currency volatility, gains on foreign exchange operations and higher returns from investments.
A major contributor to the likely payout was the nearly 10 per cent depreciation in the rupee against the US dollar during FY26, which reportedly boosted valuation gains on the RBI's foreign currency assets and expanded its balance sheet.
The central bank is also believed to have earned gains through active intervention in currency markets by selling dollars to curb excessive weakness in the rupee.
India's foreign exchange reserves increased around 3 per cent during FY26 to nearly $688 billion, further supporting the RBI's income profile.
Apart from foreign exchange operations, income from investments and currency printing activities also contributed to the expected surplus, the report said.
Over the past three financial years, RBI dividend payouts to the government have increased more than threefold, emerging as an important source of non-tax revenue for the Centre.
Meanwhile, a report released earlier this year had noted that non-tax collections remained strong during FY26, supported by a higher RBI dividend payout. It had projected the central bank's dividend transfer to remain elevated at Rs 2-2.5 trillion in FY27, compared to around Rs 2.7 trillion in FY26.
However, the RBI has not officially commented on the expected payout.
— IANS
Reader Comments
Record dividend is good, but I hope this money is used wisely - maybe for reducing fiscal deficit or for healthcare and education. Also, rupee depreciation shouldn't be celebrated as it impacts common people with higher import costs. 🤔
As an economist watching India from abroad, this is impressive. A 3-fold increase in RBI dividends over 3 years shows strong central bank performance. But I'm curious - are these gains sustainable or just a one-off from currency volatility?
The RBI is doing a fantastic job managing the rupee! But I wish the media would also talk about how this dividend helps the common taxpayer - less pressure to raise taxes or borrow from markets. Every paisa counts in a developing economy. 💪
Arre, this is double-edged sword! On one hand, good for government finances. On the other hand, when rupee falls 10%, imported inflation hits the poor hardest - dal, chawal sab mehnga ho jata hai. Hope RBI's intervention strategy balances both. 😕
A record $688 billion in forex reserves and a potential ₹3.5 lakh crore dividend - India's macroeconomic fundamentals look solid. But as someone tracking emerging markets, I'd note that such windfalls shouldn't lead to fiscal complacency. Structural reforms remain crucial. 📊
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