Daijiworld Media Network - Mumbai
Mumbai, May 22: Reserve Bank of India (RBI) on Friday approved a record surplus transfer of Rs 2.87 lac cr to the Central government for FY27, providing a major fiscal boost amid global uncertainties and rising crude oil prices.
However, the payout remains lower than the government’s Rs 3.16 lac cr estimate for total dividend receipts and surplus transfers projected in the Union Budget.
The surplus transfer, commonly referred to as the RBI dividend to the government, follows the central bank’s strong financial performance and significant balance sheet expansion during FY26. The latest transfer surpasses last year’s record payout of Rs 2.69 lac cr.
The RBI said its balance sheet expanded by 20.61 per cent year-on-year to Rs 91.97 lac cr as of March 31, 2026. Gross income rose by 26.42 per cent, while expenditure before risk provisions increased by 27.60 per cent during the fiscal year.
The Central Board also approved the transfer of Rs 1.09 lac cr to the Contingent Risk Buffer (CRB) for FY26, substantially higher than the Rs 44,861 cr allocated in the previous year. The CRB was maintained at 6.5 per cent of the balance sheet size to preserve financial resilience.
Economists had earlier projected the RBI surplus transfer in the range of Rs 2.7 lac cr to Rs 3 lac cr. While the payout is expected to provide additional support to government finances, analysts believe it may still fall short of fully easing fiscal pressures.
According to economists quoted by Reuters, the transfer may not be sufficient to ensure India meets its fiscal deficit target of 4.3 per cent, especially amid rising geopolitical tensions involving Iran that have pushed up global energy prices.
The record surplus was supported by strong gains from foreign exchange operations and investment income. Analysts said a nearly 10 per cent decline in the US dollar and a sharp 60 per cent rise in gold prices during FY26 significantly boosted the central bank’s accounting gains.
The RBI’s balance sheet expansion also contributed to the higher surplus. Economists estimate that the central bank purchased nearly Rs 9 lac cr worth of bonds during FY26 to inject liquidity into the banking system, thereby increasing its asset base.
Market experts noted that while the payout offers an important cushion to government finances, the RBI continues to balance fiscal support with maintaining adequate internal risk buffers and long-term financial stability.