RBI fills government's coffers with record 2.86 lakh crores amid global crisis

The Reserve Bank of India on Friday approved a record surplus transfer of Rs 2,86,588.46 crore to the Central Government for the financial year 2025-26. The decision was taken during the 623rd meeting of the RBI Central Board held in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra. The RBI stated that its balance sheet expanded by 20.61 per cent year-on-year to Rs 91.97 lakh crore as of March 31, 2026.

According to the RBI, the Board reviewed domestic and global economic conditions along with risks to the economic outlook before approving the annual accounts for FY26. The central bank said its gross income rose by 26.42 per cent over the previous financial year, while expenditure before risk provisions increased by 27.60 per cent. Net income before risk provisions and transfers to statutory funds stood at Rs 3,95,972.10 crore in FY26 compared to Rs 3,13,455.77 crore in FY25.

The RBI said the revised Economic Capital Framework allows flexibility in maintaining the Contingent Risk Buffer within a range of 4.5 per cent to 7.5 per cent of the balance sheet size. Taking into account macroeconomic conditions, financial performance and risk management requirements, the Board approved a transfer of Rs 1,09,379.64 crore towards the Contingent Risk Buffer for FY26. In the previous financial year, Rs 44,861.70 crore had been allocated towards the buffer.

The central bank stated that the Contingent Risk Buffer has been maintained at 6.5 per cent of the balance sheet size. Following these provisions, the Board approved the transfer of the remaining surplus amount to the Central Government for the accounting year 2025-26. The RBI also reviewed developments in the domestic and global economy during the meeting.

According to Union Budget estimates, the Central Government expects to receive around Rs 3.16 lakh crore in dividends and surpluses from the RBI, public sector banks and financial institutions during 2026-27. Deputy Governors Swaminathan J, Poonam Gupta, Shirish Chandra Murmu and Rohit Jain attended the RBI Board meeting along with other members of the Central Board.