Top News

Modi government may get record dividend from RBI in 2026
13 May 2026

The Reserve Bank of India (RBI) is likely to transfer a record dividend to the Indian government this year, as per PTI.

The move is expected to give the Centre a much-needed fiscal cushion amid challenges posed by the ongoing Middle East crisis.

The final decision on the dividend amount will be taken in an RBI board meeting scheduled for later this month.

Last year's record dividend
Increased dividend

Last year, the RBI had paid a record dividend of ₹2.69 lakh crore to the central government for 2024-25.

This was 27% higher than the ₹2.11 lakh crore transferred in the previous fiscal year.

The transferable surplus for any financial year is determined based on the revised Economic Capital Framework (ECF) approved by RBI's Central Board.

Budget documents on expected dividends
Fiscal projections

The revised framework mandates that risk provisioning under the Contingent Risk Buffer (CRB) be maintained between 7.50% and 4.50% of RBI's balance sheet.

According to Budget documents, the Centre expects ₹3.16 lakh crore in dividends and surpluses from RBI, nationalized banks, and financial institutions in 2026-27, about a 3.75% increase over the last fiscal year.

Record profits for PSBs in FY26
Bank profits

Public sector banks (PSBs) have also posted record profits in FY26.

Improved asset quality, healthy credit expansion, and higher income have contributed to PSBs' improved profitability during FY2025-26.

Aggregate operating profit reached ₹3.21 lakh crore, while aggregate net profit increased by 11.1% to a historic high of ₹1.98 lakh crore, a fourth consecutive year of aggregate profitability for PSBs.

Expected dividends from public sector enterprises
Revenue projections

The government has also estimated dividends from public sector enterprises and other investments at ₹75,000 crore, up from ₹71,000 crore in the current fiscal year.

Dividend and RBI's surplus transfers fall under the non-tax revenue category.

Overall, the Centre expects ₹6.66 lakh crore as non-tax revenue for the new fiscal year, slightly lower than ₹6.67 lakh crore expected in 2025-26.