The Reserve Bank of India (RBI) announced a record Rs 2.87 lakh crore dividend to the government for FY26. The dividend, or surplus transfer, for FY25 stood at Rs 2.69 lakh crore, which was 27.4% higher than the payout in FY24.
The record payout amid Iran-US war is expected to provide a cushion to Indian government finances at a time when rising energy prices could increase fiscal pressure.
The RBI had transferred Rs 2.1 lakh crore in dividends to the government for 2023-24 and Rs 87,416 crore for 2022-23.
In the Union Budget, the government had estimated Rs 3.16 lakh crore in dividends from the RBI and state-owned financial institutions combined. However, it does not separately disclose the expected dividend from the RBI alone.
RBI balance sheet expands over 20%
“The net income, before risk provision and transfer to statutory funds, aggregated Rs 3,95,972.10 crore in FY26 as against RS 3,13,455.77 crore in FY25,” RBI said in a statement. The Balance Sheet of the central bank expanded by 20.61% to Rs 91,97,121.08 crore as on March 31.
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RBI’s gross income rose 26.42% compared to the previous year, while expenditure before risk provisions increased 27.60%.
The decision on the dividend payout was taken at the 623rd meeting of the Central Board of Directors of RBI under the Chairmanship of Governor Sanjay Malhotra.
RBI maintains contingency risk buffer at 6.5%
The RBI said the revised Economic Capital Framework (ECF) allows the Contingent Risk Buffer (CRB) to be maintained within a range of 4.5 per cent to 7.5 per cent of the balance sheet size.
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Taking into account macroeconomic conditions, the bank’s financial performance and the need to maintain adequate risk buffers, the Central Board decided to transfer Rs 1,09,379.64 crore towards the CRB for FY26, sharply higher than Rs 44,861.70 crore transferred in the previous year.
The CRB has been maintained at 6.5% of the RBI’s balance sheet size.
TOPICSDividend paymentRBIReserve Bank of IndiaThis article was first uploaded on May twenty-two, twenty twenty-six, at forty-seven minutes past four in the afternoon.