- The Reserve Bank of India transferred a record Rs 2.86 lakh crore dividend to the Centre
- This dividend is at the lower end of analyst estimates ranging from Rs 2.7 to Rs 3.5 lakh crore
- RBI's surplus rose due to currency volatility and gains on foreign exchange operations
The Reserve Bank of India has transferred an all-time high dividend of Rs 2.86 lakh crore to the Centre amid the ongoing global headwinds. The record surplus transfer would cushion the government's finances at the start of financial year 2026-27, as the government gears up to tackle the challenge of elevated global energy prices.
The dividend transfer, though marking a new record, is at the lower end of the estimates. Ahead of the RBI decision, analysts had expected the dividend amount to range between Rs 2.7 lakh crore to Rs 3.5 lakh crore.
In the preceding financial year, ended March 31, 2025, the central bank had transferred Rs 2.69 lakh crore to the government. This was preceded by a payout of Rs 2.11 lakh crore in FY24.
The rise in surplus comes after a year in which the RBI benefited from currency volatility, gains on foreign exchange operations and returns from investments.
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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.
Notably, the 10% depreciation in the rupee against the US dollar during FY26 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.
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.
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