RBI to transfer record Rs 2.87 lakh crore dividend to government for FY26; balance sheet expands 20.61%

The Reserve Bank of India (RBI) on Friday approved a record surplus transfer of Rs 2.87 lakh crore to the Government of India for FY26, surpassing the previous year’s payout of Rs 2.69 lakh crore.

The decision was approved by the RBI Central Board and comes as a major fiscal boost for the Centre amid rising crude oil prices, global economic uncertainty, and geopolitical tensions.

According to the RBI statement, the central bank’s balance sheet expanded 20.61% year-on-year to Rs 91.97 lakh crore as of March 31, 2026.

The sharp increase in surplus transfer was driven by stronger earnings from foreign exchange operations, gains arising from currency volatility, and higher returns on investments during the fiscal year.

The record dividend is expected to provide the government with additional fiscal space, helping manage fiscal deficit targets while reducing pressure for aggressive market borrowing. The transfer also comes at a time when elevated oil prices and global macroeconomic uncertainties continue to impact inflation and government expenditure calculations.

The FY26 payout now becomes the highest-ever surplus transfer by the central bank, exceeding the previous record of Rs 2.69 lakh crore transferred in FY25.

Separately, earlier in 2026, the RBI had also revised dividend distribution guidelines for commercial banks. Under the updated framework, banks can distribute a maximum of 75% of net profit as dividends. The regulator also eased adjusted profit calculations by allowing banks to deduct only 50% of net non-performing assets (NPAs), compared to the earlier proposed 100% deduction.

The revised dividend norms were seen as supportive for banking sector capital management and shareholder payouts.

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