RBI Transfers ₹2.9 Trillion Surplus to Government for 2025-26

The Reserve Bank of India (RBI) has transferred nearly ₹2.9 trillion of its surplus for 2025-26 to the central government. This is 6.7% higher than the amount transferred for the previous year. Each year, the RBI passes on its excess income, after meeting its own expenses and reserves, to the government.

To decide how much to transfer, the RBI sets aside a portion of its income as a contingency risk buffer. This year it kept the buffer at 6.5% of the size of its balance sheet, lower than last year’s 7.5%. A smaller buffer left more money available for transfer to the government.

The RBI’s balance sheet grew by about 21% to nearly ₹92 trillion as on 31 March. The larger asset base, combined with the reduced buffer, increased the size of the payout while still keeping the central bank’s finances prudent.

This surplus transfer is an important source of non-tax revenue for the government and helps it manage its fiscal position. Aspirants should understand how the RBI’s dividend supports the Union Budget and the role of the contingency reserve.