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RBI Board Approves Massive Surplus Transfer Amid Strong Income Growth
The Reserve Bank of India has approved the transfer of a record ₹2.86 lakh crore surplus to the Central Government for the financial year 2025-26. The decision was taken during the RBI Central Board meeting chaired by Governor Sanjay Malhotra in Mumbai.
The Reserve Bank of India has approved the transfer of a record surplus amount of ₹2.86 lakh crore to the Central Government for the financial year 2025-26, marking one of the highest dividend payouts ever made by the central bank.
The decision was taken during the 623rd meeting of the RBI Central Board of Directors held in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra.
In an official statement, the RBI said its gross income rose by 26.42 per cent during FY26 compared to the previous financial year. Expenditure before risk provisions also increased by 27.60 per cent during the same period.
According to the central bank, net income before risk provisions and transfer to statutory funds stood at ₹3.95 lakh crore in FY26, significantly higher than ₹3.13 lakh crore recorded in FY25. The RBI’s balance sheet expanded by 20.61 per cent to ₹91.97 lakh crore as of March 31, 2026.
The RBI further stated that it transferred ₹1.09 lakh crore towards the Contingent Risk Buffer for FY26 while maintaining the buffer at 6.5 per cent of the balance sheet in line with the revised Economic Capital Framework.
During the meeting, the Central Board also reviewed global and domestic economic conditions, discussed risks to the economic outlook, and deliberated on the RBI’s annual accounts for the financial year 2025-26.
Economists believe the record surplus transfer could provide additional fiscal space to the government by supporting expenditure plans, infrastructure investments, and deficit management.