- RBI board to meet Friday to decide FY26 surplus transfer amounting Rs 2.7-3.5 lakh crore
- Expected payout for FY26 may surpass last year’s record Rs 2.69 lakh crore dividend
- Rupee depreciation and forex gains boosted RBI’s balance sheet and surplus in FY26
The Reserve Bank of India is likely to hand the Centre its biggest-ever dividend payout, potentially offering a significant fiscal cushion at the start of FY27. According to sources, the RBI board is scheduled to meet on Friday to consider the surplus transfer for FY26, with the payout expected in the range of Rs 2.7 lakh crore to Rs 3.5 lakh crore. That would surpass last year's record dividend of Rs 2.69 lakh crore paid for FY25.
The sharp rise in surplus comes after a year in which the RBI benefited from currency volatility, gains on foreign exchange operations and returns from investments.
One of the biggest contributors to the bumper payout was the nearly 10% depreciation in the rupee against the US dollar during FY26, which helped expand the RBI's balance sheet and boosted valuation gains on foreign currency assets. The central bank is also believed to have earned gains from active intervention in currency markets as it sold dollars to curb excessive rupee weakness.
ALSO READ: RBI's VRR Auction Sees Weak Demand For Fifth Straight Time Despite Tightening Liquidity
India's foreign exchange reserves rose around 3% during FY26 to about $688 billion, adding further support to the RBI's income profile. Apart from forex operations, income from investments and currency printing operations also contributed to the likely surplus.
Over the last three financial years, RBI dividend payouts to the government have risen more than threefold, emerging as an increasingly important non-tax revenue source for New Delhi.
Another thing to watch closely is whether the RBI tweaks its contingency risk buffer. The central bank currently maintains a contingency buffer of up to 7.5%, and any decision to lower that allocation could further enhance the transferable surplus.
The RBI has not yet responded to queries from NDTV Profit regarding the expected payout.
ALSO READ: RBI To Conduct $5-Billion Sell, Swap Auction To Inject Liquidity Amid Forex Concerns
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
