New Delhi, May 22: The Reserve Bank of India (RBI) on Friday approved a record surplus transfer of Rs 2.87 lakh crore to the Central government for FY26, supported by strong growth in its balance sheet and income.
The decision was taken during the 623rd meeting of the RBI Central Board of Directors held in Mumbai under the chairmanship of Governor Sanjay Malhotra.
The Central Board reviewed the domestic and global economic environment, including risks to the economic outlook, and approved the central bank’s annual accounts for FY2025-26.
According to RBI, its balance sheet expanded 20.61 per cent to Rs 91.97 lakh crore as of March 31, 2026.
The central bank reported a 26.42 per cent increase in gross income during FY26, while expenditure before risk provisions rose 27.60 per cent compared with the previous financial year.
Net income before risk provisions and transfer to statutory funds stood at Rs 3,95,972.10 crore for FY26, up from Rs 3,13,455.77 crore in FY25.
RBI said the revised Economic Capital Framework (ECF) provides flexibility to maintain the Contingent Risk Buffer (CRB) within a range of 4.5 per cent to 7.5 per cent of the balance sheet size.
Taking into account prevailing macroeconomic conditions, the bank’s financial performance and the need for adequate risk provisioning, the Central Board approved a transfer of Rs 1,09,379.64 crore towards the Contingent Risk Buffer for FY26.
This compares with Rs 44,861.70 crore allocated to the buffer in the previous financial year.
The RBI maintained the Contingent Risk Buffer at 6.5 per cent of the size of its balance sheet and subsequently approved the transfer of a surplus of Rs 2,86,588.46 crore to the Central government for FY26.
The record payout is expected to strengthen the government’s fiscal position and provide additional financial flexibility.
According to Budget estimates, the Centre expects to receive Rs 3.16 lakh crore in dividends and surplus transfers from the RBI, public sector banks and financial institutions during FY27.
