RBI Transfers Record ₹2.87 Lakh Crore Dividend to the Centre

The Reserve Bank of India has approved a record surplus transfer of ₹2.87 lakh crore to the central government for the year, higher than the ₹2.68 lakh crore transferred a year earlier. The dividend is the surplus the central bank earns mainly from its foreign exchange operations, interest on holdings, and other income, after meeting its own expenses.

Along with the higher payout, the RBI also raised its contingency risk buffer by over ₹1 lakh crore. This buffer is a reserve the central bank keeps to absorb shocks from sharp movements in markets or its own balance sheet, and a higher buffer signals caution amid global uncertainty.

For the government, the transfer is a significant support to public finances, helping manage the fiscal deficit at a time of revenue pressure. The size of the RBI's surplus and the buffer is decided using the Economic Capital Framework.