Delhi, May 22: The Reserve Bank of India (RBI) on Friday announced a record dividend payout of Rs 2.87 lakh crore to the Central government for the financial year 2025-26, providing major fiscal support to the Union government amid global economic uncertainty and geopolitical challenges.
The decision was taken during the 623rd meeting of the RBI Central Board of Directors held under the chairmanship of RBI Governor Sanjay Malhotra.
According to the central bank, the dividend payout for 2025-26 is significantly higher than the Rs 2.69 lakh crore surplus transferred during 2024-25.
Earlier, the RBI had transferred Rs 2.1 lakh crore to the Centre for 2023-24 and Rs 87,416 crore for 2022-23.
RBI reports sharp rise in income
In a statement, the RBI said its net income before risk provisions and transfer to statutory funds increased substantially during the financial year.
“The net income, before risk provision and transfer to statutory funds, aggregated Rs 3,95,972.10 crore in FY 2025-26 as against Rs 3,13,455.77 crore in FY 2024-25,” the central bank stated.
Officials said the increase in surplus was supported by higher earnings from foreign exchange reserves, interest income, and investment operations.
The RBI’s balance sheet also witnessed strong growth during the financial year.
According to official data, the central bank’s balance sheet expanded by 20.61 percent to Rs 91,97,121.08 crore as of March 31, 2026.
Economic experts believe the record surplus transfer will provide significant fiscal flexibility to the Central government ahead of major expenditure commitments and infrastructure spending plans.
The dividend payout is expected to help the government manage fiscal deficit targets while increasing spending on welfare schemes, capital expenditure, and development programmes.
Analysts said the higher dividend could also reduce borrowing pressure on the government and improve overall fiscal stability.
The RBI annually transfers surplus earnings to the Centre under provisions of the Reserve Bank of India Act after maintaining required contingency reserves and provisions.
Strong financial performance boosts RBI surplus
Experts noted that higher global interest rates, improved returns on foreign assets, and stronger treasury operations contributed to the RBI’s improved earnings during the financial year.
The central bank has also continued strengthening its contingency risk buffers while maintaining financial stability and liquidity management in the economy.
The record dividend announcement comes at a time when India continues to navigate global economic volatility, inflation concerns, and geopolitical uncertainties affecting international markets.
Financial analysts said the strong surplus position reflects the resilience of India’s banking and monetary management systems despite global challenges.
