RBI approves record Rs 2.87 trillion surplus transfer to Centre for FY26

The Central Board of Reserve Bank of India (RBI) approved a record surplus transfer of Rs 2.87 trillion to the Central government for 2025-26. This marks a 6.99 per cent increase over the previous year, supported by a sharp rise in the central bank’s income and a significant expansion in its balance sheet.

The RBI had transferred Rs 2.68 trillion to the government in the previous financial year, while the surplus payout stood at Rs 2.11 trillion in FY24.

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The decision was taken at the 623rd meeting of the RBI’s Central Board of Directors held in Mumbai under the chairmanship of Governor Sanjay Malhotra.

The surplus transfer for FY26 stood at Rs 2,86,588.46 crore, reflecting strong earnings from foreign exchange operations and investments amid elevated global interest rates and heightened currency market volatility.

The Board also approved a transfer of Rs 1,09,379.64 crore towards the Contingent Risk Buffer (CRB) for FY26, sharply higher than Rs 44,861.70 crore transferred in the previous year, while maintaining the CRB at 6.5 per cent of the RBI’s balance sheet size.

Under the revised Economic Capital Framework (ECF), the RBI is required to maintain the CRB within a range of 4.5 per cent to 7.5 per cent of its balance sheet.

According to the RBI, its gross income rose 26.42 per cent year-on-year during FY26, while expenditure before risk provisions increased 27.60 per cent. Net income before risk provisions and transfers to statutory funds stood at Rs 3,95,972.10 crore, compared with Rs 3,13,455.77 crore in FY25.

The central bank’s balance sheet expanded 20.61 per cent to Rs 91,97,121.08 crore as of March 31, 2026.

“The Board reviewed the global and domestic economic scenario, including risks to the outlook,” the RBI said in a statement after the meeting.