RBI Approves Record ₹2.87 Lakh Crore Dividend
The Reserve Bank of India has approved a record ₹2.87 lakh crore surplus transfer to the central government for the last financial year. The payout is higher than last year’s ₹2.69 lakh crore transfer, but remains below market expectations.
RBI Dividend To Government Hits Record High
The RBI board approved the ₹2.87 trillion surplus transfer after reviewing the central bank’s financial position. Economists had expected a higher payout in the range of ₹2.9 trillion to ₹3.2 trillion.
The government had budgeted ₹3.16 trillion in dividends from the RBI and state-owned financial institutions combined, but it does not provide a separate estimate for the RBI payout.
Fiscal Deficit Concerns Rise After Payout
The lower-than-expected dividend may limit the government’s fiscal room at a time when finances are under pressure from higher energy costs and subsidy needs.
India has reduced federal taxes on fuels to protect consumers from rising crude prices linked to the Iran war. Fertiliser subsidy spending is also expected to rise, adding pressure on the fiscal deficit.
RBI Balance Sheet Expands Sharply
The RBI’s balance sheet expanded 20.61% to ₹91.97 trillion as of March 31, 2026. Its gross income rose 26.42%, while expenditure increased 27.60%.
The central bank also reduced its contingency risk buffer to 6.5% of its balance sheet from 7.5% a year earlier. The RBI transferred ₹1.09 trillion to the contingency risk buffer, while the remaining surplus will go to the government.
