The Reserve Bank of India (RBI) on Friday announced a record surplus transfer of Rs 2.87 lakh crore to the Central government for the financial year ended March 2025, providing a significant boost to the exchequer at a time of rising import pressures and global uncertainty triggered by the ongoing West Asia conflict.
The dividend is about 6.7 per cent higher than the Rs 2.69 lakh crore transferred in the previous fiscal year, underscoring the central bank’s stronger financial performance during the period.
In its statement, the RBI said its net income before risk provisions and transfers to statutory funds stood at Rs 3.96 lakh crore in FY26, compared with Rs 3.13 lakh crore in FY25. The central bank also noted a substantial expansion in its balance sheet, which grew by 20.61 per cent to Rs 91,97,121.08 crore as of March 31, 2026.
The RBI’s Central Board of Directors, at its latest meeting, reviewed both global and domestic economic conditions, including emerging risks to the economic outlook, before approving the surplus transfer to the government.
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The central bank said its revised Economic Capital Framework (ECF) allows flexibility in maintaining the Contingent Risk Buffer (CRB) within a range of 4.5 per cent to 7.5 per cent of the balance sheet size. Based on prevailing macroeconomic conditions and financial performance, the Board decided to maintain a prudent buffer while transferring a higher surplus to the government.
According to the statement, Rs 1,09,379.64 crore has been allocated towards the Contingent Risk Buffer for FY 2025–26, compared with Rs 44,861.70 crore in the previous year. The CRB has been maintained at 6.5 per cent of the RBI’s balance sheet, lower than the 7.5 per cent level set in the previous year, allowing for a higher dividend payout.
“The Central Board approved the transfer of surplus of Rs 2,86,588.46 crore to the Central Government for the accounting year 2025–26,” the RBI said.
The 623rd meeting of the Central Board was chaired by RBI Governor Sanjay Malhotra. Deputy Governors Swaminathan J, Poonam Gupta, Shirish Chandra Murmu, and Rohit Jain were present at the meeting, along with several other board directors.
These included Nagaraju Maddirala, Secretary, Department of Financial Services; Satish Kashinath Marathe; Revathy Iyer; Sachin Chaturvedi; Anand Gopal Mahindra; Venu Srinivasan; and Pankaj Ramanbhai Patel.
Officials noted that the decision comes against the backdrop of heightened global volatility, particularly the West Asia crisis, which has led to a surge in crude oil and commodity prices, including fertilisers. Rising import costs and currency depreciation have added pressure on India’s external balance.
India currently imports about 88 per cent of its crude oil requirements, making the economy particularly sensitive to fluctuations in global energy prices and geopolitical disruptions.
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