New Delhi: The Central Board of the Reserve Bank of India (RBI) on Friday approved a surplus transfer of Rs 2,86,588.46 crore to the Central government for the financial year 2025-26, marking one of the highest payouts by the country’s central bank.
The decision was taken during the 623rd meeting of the Central Board held in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra. The meeting reviewed the global and domestic economic environment, including risks affecting the broader outlook, while also examining the central bank’s annual accounts for FY26, the RBI said in a press release.
According to the RBI, the bank’s gross income for FY26 registered a rise of 26.42% compared to the previous financial year. Expenditure before risk provisions also increased by 27.60% during the same period.
The central bank reported net income of Rs 3,95,972.10 crore before risk provisioning and statutory transfers for FY26, compared with Rs 3,13,455.77 crore recorded in FY25. The RBI’s balance sheet size expanded by 20.61% year-on-year to Rs 91,97,121.08 crore as of March 31, 2026.
The board also reviewed the revised Economic Capital Framework, which allows the Contingent Risk Buffer to remain within a range of 4.5% to 7.5% of the RBI’s balance sheet size. Taking into account prevailing macroeconomic conditions, the RBI’s financial performance, and the need to maintain adequate risk buffers, the Central Board approved a transfer of Rs 1,09,379.64 crore towards the Contingent Risk Buffer for FY26. This is significantly higher than the Rs 44,861.70 crore allocated in the previous financial year.
Following the allocation, the Contingent Risk Buffer has been maintained at 6.5% of the RBI’s balance sheet size.
The higher surplus transfer is expected to provide additional fiscal space to the Central government at a time when policymakers are balancing growth priorities, infrastructure spending, and fiscal consolidation targets.
