Kumud Das Mumbai

TheReserve Bank of India on Friday transferred a record dividend of Rs 2.87 lakh crore to the Centre for FY26, providing the government with a fiscal cushion to address challenges arising from the ongoing Middle East crisis.

“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 in a statement.

The gross income of the RBI increased by 26.42 per cent over the previous year, while expenditure before risk provisions rose by 27.6 per cent. The balance sheet of the apex bank expanded by 20.61 per cent to Rs 91,97,121.08 crore as on March 31, 2026. Compared with the Budget Estimates, the fisc is expected to remain under pressure due to expectations of higher fertiliser and fuel subsidy requirements, lower tax collections and reduced dividends from oil marketing companies (OMCs). Talking to Bizz Buzz , Aditi Nayar said, “While the Economic Stabilisation Fund and customs duty hikes on gold and silver imports are likely to provide some cushion, we expect the Government of India to exceed the budgeted fiscal deficit target for FY27 of 4.3 per cent of GDP by 40 basis points, assuming an average crude oil price of $95 per barrel during the fiscal.”

In the Union Budget, the government had accounted for Rs 3.16 lakh crore in dividends from the RBI and state-owned financial institutions.

The transferable surplus for any financial year is determined on the basis of the revised Economic Capital Framework (ECF) approved by the RBI’s Central Board. Last year, the RBI made a record dividend payout of Rs 2.69 lakh crore to the Central Government for 2024-25, 27 per cent higher than the Rs 2.11 lakh crore transferred in the previous year.