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RBI Set to Transfer Highest-Ever Dividend to Central Government
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Economic Times5/13/2026Business2 min readIndia

RBI Set to Transfer Highest-Ever Dividend to Central Government

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  • The Reserve Bank of India (RBI) is expected to pay its highest-ever dividend to the Indian central government, providing a crucial fiscal cushion amid challenges from the Middle East crisis.
  • The dividend amount will be decided in an upcoming board meeting this month, with the government expecting Rs 3.16 lakh crore in dividends and surpluses for 2026-27, aided by record profits from public sector banks.

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The Reserve Bank of India (RBI) is set to transfer its highest-ever dividend to the central government, offering a crucial fiscal cushion amid challenges from the Middle East crisis. The RBI’s board will decide the dividend amount this month. Last year, the RBI made a record dividend payout of Rs 2.69 lakh crore to the central government for 2024-25, 27% higher than the previous year. The government expects Rs 3.16 lakh crore in dividends and surpluses for 2026-27, up about 3.75% over the current fiscal, aided by public sector banks’ record profits...

Improved asset quality, healthy credit expansion, and higher income contributed to the improved profitability of PSBs in FY 2025-26, with aggregate net profit increasing by 11.1% to a historic high of Rs 1.98 lakh crore.

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This article was originally published by Economic Times.

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