RBI approves record ₹2.87 lakh crore dividend transfer to Centre for FY26
The Reserve Bank of India (RBI) has approved a record dividend transfer of ₹2.87 lakh crore to the central government for fiscal year 2026. This transfer is intended to support public finances amid rising economic pressures, although economists are divided on its sufficiency to prevent a widening fiscal deficit. The RBI also increased its provisions towards a contingent risk buffer to prepare for global economic uncertainties.
- ▪The dividend transfer is higher than last year's ₹2.68 lakh crore but slightly below expectations.
- ▪Economists express mixed views on whether the transfer will alleviate fiscal deficit concerns amid geopolitical tensions.
- ▪The RBI's Central Board of Directors approved the transfer during a meeting chaired by Governor Sanjay Malhotra.
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RBI approves record ₹2.87 lakh crore dividend transfer to Centre for FY26Economists remained divided on whether the transfer would be enough to prevent a widening fiscal deficit amid escalating geopolitical tensions.Updated on: May 23, 2026 7:40 AM ISTBy HT CorrespondentShare viaCopy link The Reserve Bank of India (RBI) on Friday approved a record dividend transfer of ₹2.87 lakh crore to the central government for fiscal year 2026 (FY26) while sharply increasing provisions towards its contingent risk buffer (CRB), signalling a balancing act between supporting public finances and preparing for heightened global economic risks.The Reserve Bank of India (RBI) has approved ₹1.09 lakh crore risk buffer allocation amid global uncertainty (HT)The dividend payout, higher than last year’s ₹2.68…
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