The Reserve Bank of India (RBI) is projected to transfer a substantial surplus dividend to the government for the financial year 2026, with estimates ranging between Rs 2.7 lakh crore and Rs 3.5 lakh crore. NDTV Profit revealed that the RBI board is set to convene on Friday to review the surplus transfer. If approved at the higher end of the projections, this would signify the largest-ever dividend payout by the central bank to the government.
Last year, the RBI had transferred a historic surplus of Rs 2.69 lakh crore to the Centre for the financial year 2025. The anticipated surge in the surplus is attributed to a year where the RBI benefited from currency fluctuations, gains on foreign exchange operations, and increased returns from investments.
A significant factor contributing to the expected payout was the nearly 10% depreciation of the rupee against the US dollar during FY26, reportedly amplifying valuation gains on the RBI’s foreign currency assets and enlarging its balance sheet. The central bank is also said to have garnered profits through active involvement in currency markets by selling dollars to mitigate excessive rupee weakness.
India’s foreign exchange reserves rose by approximately 3% during FY26 to nearly $688 billion, further bolstering the RBI’s income profile. Apart from foreign exchange operations, income from investments and currency printing activities also played a role in the anticipated surplus, as per the report.
Over the past three fiscal years, RBI dividend payouts to the government have more than tripled, becoming a crucial source of non-tax revenue for the Centre. A report earlier this year highlighted the robustness of non-tax collections in FY26, supported by a higher RBI dividend payout. It forecasted the central bank’s dividend transfer to remain high at Rs 2-2.5 trillion in FY27, compared to around Rs 2.7 trillion in FY26. However, the RBI has not officially commented on the expected payout.
