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The Reserve Bank of India is anticipated to transfer its highest-ever dividend to the government, offering a strong fiscal support at a time when global uncertainties, including the Middle East situation, are affecting economic planning. Last year, RBI’s dividend stood at INR 2.69 lakh crore, significantly higher than the previous year’s INR 2.11 lakh crore. The upcoming decision is expected in the RBI board meeting scheduled later this month. Alongside this, strong profitability from public sector banks and other financial institutions is expected to support higher-than-budgeted non-tax revenue for the government in the coming fiscal year.
The Reserve Bank of India (RBI) is expected to transfer its highest-ever dividend to the central government, which is likely to provide additional fiscal support as the Centre manages economic pressures linked to ongoing global uncertainties, including the situation in the Middle East. Sources indicated that the final dividend amount is expected to be decided in the RBI board meeting scheduled later this month. Advertisement
In the previous financial year, the RBI had delivered a record dividend of INR 2.69 lakh crore for 2024–25, marking a 27 per cent rise compared to INR 2.11 lakh crore transferred in the year before. This strong growth has set expectations for another high payout in the current cycle.
The transferable surplus of the RBI is calculated based on the revised Economic Capital Framework approved by the Central Board of the bank. Under the revised norms, risk provisioning under the Contingent Risk Buffer is required to be maintained within a range of 4.50 per cent to 7.50 per cent of the RBI’s balance sheet.
Budget estimates indicate that the government is expecting INR 3.16 lakh crore in dividends and surplus transfers from the Reserve Bank of India, nationalised banks, and other financial institutions in 2026–27. This projection is about 3.75 per cent higher than the current fiscal estimates. Sources noted that these expectations are conservative and actual transfers may exceed the Budget Estimate for FY27.
Public sector banks have also contributed to stronger-than-expected financial inflows, supported by improved asset quality, steady credit growth, and higher income levels. During FY 2025–26, aggregate operating profit across public sector banks reached INR 3.21 lakh crore, while aggregate net profit stood at INR 1.98 lakh crore, reflecting an 11.1 per cent rise and marking the fourth consecutive year of record profitability.
Dividends from public sector enterprises and other investments are estimated at INR 75,000 crore, up from INR 71,000 crore in the current fiscal year. These dividend inflows, along with RBI surplus transfers, are classified under non-tax revenue.
Overall, the Centre is projected to earn INR 6.66 lakh crore in non-tax revenue in the next fiscal year, marginally lower than INR 6.67 lakh crore estimated for 2025–26. Meanwhile, tax revenue is expected to be INR 28.66 lakh crore, reflecting a 7.18 per cent increase over INR 26.74 lakh crore estimated for the current fiscal year.
Source PTI
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