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The payout is expected to provide the government with extra fiscal room for spending while helping keep the fiscal deficit under control.
The decision was taken during the 623rd meeting of the RBI’s Central Board in Mumbai.
The Reserve Bank of India (RBI) on Friday approved a record dividend payout of Rs 2.87 lakh crore to the central government for the 2025-26 financial year, giving a major boost to public finances at a time of global economic uncertainty and rising geopolitical tensions.
The surplus transfer is higher than the Rs 2.69 lakh crore paid in FY25 and Rs 2.1 lakh crore transferred in FY24. The payout is expected to provide the government with extra fiscal room for spending while helping keep the fiscal deficit under control.
The decision was taken during the 623rd meeting of the RBI’s Central Board in Mumbai under the chairmanship of Governor Sanjay Malhotra.
Stronger Income Growth
In a statement, the RBI said its net income before risk provisions and transfer to statutory funds rose to Rs 3.96 lakh crore in FY26, compared with Rs 3.13 lakh crore a year earlier.
The central bank’s gross income increased 26.42 per cent year-on-year, while expenditure before risk provisions rose 27.6 per cent during the same period.
The RBI also said its balance sheet expanded 20.61 per cent to Rs 91.97 lakh crore as of March 31, 2026.
The Board reviewed domestic and global economic conditions, including risks to the growth outlook, before approving the annual accounts for FY26.
Higher Risk Buffer
Under the revised Economic Capital Framework, the RBI maintained the Contingent Risk Buffer at 6.5 per cent of the balance sheet size.
The central bank approved a transfer of Rs 1.09 lakh crore towards the risk buffer for FY26, sharply higher than the Rs 44,861.7 crore set aside in the previous financial year.
The RBI said the move was aimed at maintaining adequate financial safeguards amid changing macroeconomic conditions.
The central bank’s deputy governors Swaminathan J., Poonam Gupta, Shirish Chandra Murmu and Rohit Jain, along with other board members, attended the meeting.
(With inputs from PTI)
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