RBI Approves Record ₹2.87 Lakh Crore Dividend

The Reserve Bank of India approved a dividend of ₹2,86,588.46 crore for the Central Government for the accounting year 2025-26 on 22 May 2026. The amount is the largest surplus transfer in the history of the Reserve Bank of India and is 6.7% higher than the ₹2.69 lakh crore transferred in 2024-25.

Reserve Bank of India Dividend Framework

The Reserve Bank of India transfers surplus income to the Central Government under its annual balance sheet and profit distribution process. The dividend is derived after meeting expenditure, provisions, and risk buffers under the central bank’s accounting framework.

Central Board of Directors Meeting

The decision was taken in the 623rd meeting of the Central Board of Directors of the Reserve Bank of India in Mumbai. Governor Sanjay Malhotra chaired the meeting, which approved the surplus transfer for FY26.

Income, Balance Sheet and Risk Buffer

The Reserve Bank of India reported a 26.42% rise in gross income over the previous year. Its net income before risk provisions rose to ₹3.96 lakh crore in FY26 from ₹3.13 lakh crore in FY25, and its balance sheet expanded by 20.61% to ₹91,97,121.08 crore as of 31 March 2026. The Contingent Risk Buffer was retained at 6.5% of the balance sheet size for FY26. The Reserve Bank of India transferred ₹1,09,379.64 crore to the Contingent Risk Buffer for the same period.

Important Facts for Exams

• The Reserve Bank of India was established in 1935 under the Reserve Bank of India Act, 1934.
• The Central Board of Directors is the apex decision-making body of the Reserve Bank of India.
• The Contingent Risk Buffer is a reserve maintained by the Reserve Bank of India to meet unexpected risks.
• The financial year in India runs from 1 April to 31 March.

Fiscal Transfer and Government Finances

Surplus transfer from the Reserve Bank of India is a non-tax revenue receipt for the Union Government. Such transfers are recorded in the Union Budget under receipts from the central bank.