Last Updated:
According to reports, the RBI is expected to transfer a record surplus of around Rs 3 lakh crore for FY26, compared with Rs 2.69 lakh crore last year.
The RBI will announce the quantum of FY26 dividend in the evening today.
RBI Surplus Transfer for FY26: The Reserve Bank of India’s (RBI) board is scheduled to meet today, May 22. The board meeting assumes significance as the central bank is set to announce its annual dividend for the government for the financial year 2025-26. According to reports, the RBI is expected to transfer a record surplus of around Rs 3 lakh crore for FY26, compared with Rs 2.69 lakh crore last year.
The FY25 dividend of Rs 2.69 lakh crore was 27 per cent higher than the payout of Rs 2.11 lakh crore in FY2023-24.
Under the RBI’s Economic Capital Framework, the RBI is recommended to maintain a contingency reserve of 4.5% to 7.5% of its balance sheet and transfer the rest to the government. The reserve is currently maintained at 7.5%.
When will the RBI announce its dividend amount?
The RBI will announce the quantum of FY26 dividend in the evening today. Apart from the dividend, the board will also discuss other central bank issues in view of geopolitical developments and the domestic economic situation.
What Analysts Expect
Analysts expect dividends in the range of Rs 2.7 lakh crore to Rs 3.2 lakh crore. Madan Sabnavis, chief economist of Bank of Baroda, said the dividend might be Rs 3-3.2 lakh crore, mainly due to the contingency buffer requirement. He said that if the RBI lowers the contingent risk buffer to 7 per cent, against the current 7.5 per cent, it might release more money.
However, according to a report by IDFC FIRST Bank, the RBI dividend is expected to be around Rs 2.7 lakh crore, supported by interest income on foreign securities and rupee securities, although gains from forex transactions are expected to be lower than last year.
The report also noted that the RBI may need to set aside higher provisions because of a significant expansion in its balance sheet during FY26. This growth has been driven by open market operations, gains from the revaluation of foreign currency reserves, and rising gold prices.
Meanwhile, the Union Budget 2026-27 has projected dividend receipts of Rs 3.2 lakh crore from the RBI and other public sector financial institutions.
Read More
Source link
[ad_3]
