Noida, May 22 (APAC Media): The Central Board of Directors of the Reserve Bank of India (RBI) on Friday approved the transfer of a record surplus of Rs 2,86,588.46 crore to the Central Government for the accounting year 2025–26, following a review of the central bank’s annual accounts and prevailing macroeconomic conditions.
The decision was taken at the 623rd meeting of the Central Board held in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra.
In a statement issued after the meeting, the RBI said the Board “reviewed the global and domestic economic scenario, including risks to the outlook” and deliberated on the annual accounts of the central bank for FY26.
“The gross income of the bank increased by 26.42 % over the previous year while the expenditure before risk provisions increased by 27.60 %,” the RBI said.
According to the central bank, net income before risk provisions and transfer to statutory funds stood at Rs 39,597.21 crore in FY26 compared with Rs 31,345.57 crore in FY25.
“Taking into consideration the current macroeconomic factors, financial performance of the bank and maintenance of appropriate risk buffers, the Central Board decided to transfer Rs 1,09,379.64 crore towards the CRB for FY 2025-26 as against Rs 44,861.70 crore in the previous year and maintain the CRB at 6.5 % of the size of the RBI balance sheet,” the statement said.
The RBI further said its balance sheet expanded by 20.61 % to Rs 91,971,210.8 crore as of March 31, 2026.
“The RBI’s record surplus transfer of ₹2.87 lakh crore for FY26 provides the government with a significant fiscal buffer at a crucial time for the global economy. This additional fiscal space will enable higher investments in infrastructure, healthcare, education, digital development and renewable energy, while also supporting fiscal consolidation efforts.” Jyoti Prakash Gadia, Managing Director, Resurgent India Ltd.
Referring to the revised Economic Capital Framework (ECF), the central bank said the framework provides flexibility to maintain the Contingent Risk Buffer (CRB) within a range of 4.5 % to 7.5 % of the balance sheet size.
“The sizeable surplus transfer also reflects the RBI’s financial strength and prudent balance-sheet management. More importantly, it reinforces confidence in India’s macroeconomic stability and policy framework, assuring investors that the country remains well-positioned to sustain growth amid global economic uncertainties. “Jyoti Prakash added.
The RBI said the Board subsequently approved the transfer of a surplus of Rs 28,658.846 crore to the Central Government for FY26.
The surplus transfer, significantly higher than the previous year, is expected to provide additional fiscal space to the government and support public expenditure commitments.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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