RBI Transfers Record ₹2.86 Lakh Cr Surplus To Centre Amid Fiscal Pressure

The Reserve Bank of India has approved a record surplus transfer of ₹2.86 lakh crore to the central government for the financial year 2025-26, surpassing last year's payout and offering the government some fiscal breathing room at a time of considerable economic uncertainty.

The decision was taken at the 623rd meeting of the RBI's Central Board of Directors, chaired by Governor Sanjay Malhotra. The transfer tops the previous record of ₹2.69 lakh crore paid out for FY25, which was itself 27% higher than the ₹2.1 lakh crore transferred in FY24. For context, the payout in FY23 stood at ₹87,416 crore — underscoring how sharply the central bank's surplus transfers have grown over the past three years.

The bumper dividend reflects a strong year for the RBI's own finances. Gross income rose 26.42% over the previous year, with net income before risk provisions and statutory fund transfers coming in at ₹3.95 lakh crore, up from ₹3.13 lakh crore in FY25. The RBI's balance sheet expanded 20.61% to ₹91.97 lakh crore as of 31 March 2026. Expenditure before risk provisions rose 27.6%, broadly in line with income growth.

One notable aspect of this year's transfer is that the RBI lowered its contingency risk buffer — funds set aside to protect the central bank against financial volatility — to 6.5% of its balance sheet from 7.5% in the previous year. That reduction helped release additional funds for the surplus transfer.

The timing of the payout carries fiscal significance. The government had budgeted for ₹3.16 lakh crore in combined dividends and surpluses from the RBI, nationalised banks and financial institutions in FY27. Friday's announcement covers only the RBI's portion, leaving room for further inflows from state-owned lenders.

The windfall arrives as the government faces a potentially wider fiscal deficit than targeted. A Reuters poll has placed the deficit at 4.7% of GDP for the current fiscal year, above the government's own target of 4.3% and last year's 4.4%. Some economists put the figure as high as 5% of GDP. The RBI dividend, classified as non-tax revenue, will count towards narrowing that gap. Total non-tax revenue for FY27 is projected at Rs 6.66 lakh crore, marginally below the ₹6.67 lakh crore recorded in FY26.