RBI Approves Massive ₹2.86 Lakh Crore Surplus Transfer to Government for FY26
The RBI Central Board, chaired by Governor Sanjay Malhotra, approved a surplus transfer of ₹2,86,588.46 crore to the Union Government for FY 2025-26. This follows a 20.61% expansion of the central bank's balance sheet and a decision to set the Contingent Risk Buffer at 6.5%.
At its 623rd meeting in Mumbai, the RBI Central Board finalized the annual accounts for fiscal year 2025-26, reporting a 26.42% increase in gross income. The bank's balance sheet reached ₹91,97,121.08 crore as of March 31, 2026, marking a 20.61% expansion from the previous year. While expenditure before risk provisions rose by 27.60%, the net income before provisions aggregated to ₹3,95,972.10 crore.
The Board utilized the Economic Capital Framework (ECF) to peg the Contingent Risk Buffer (CRB) at 6.5% of the total balance sheet. This necessitated a ₹1,09,379.64 crore transfer to the buffer, ensuring the institution remains resilient against macroeconomic shocks while freeing up ₹2,86,588.46 crore for the national exchequer. This transfer serves as a substantial non-tax revenue source for the Central Government’s fiscal management.
| Metric (FY 2025-26) | Value / Percentage |
|---|---|
| Net Income (Pre-Provision) | ₹3,95,972.10 Crore |
| Surplus Transfer to Government | ₹2,86,588.46 Crore |
| Balance Sheet Size | ₹91,97,121.08 Crore |
| Contingent Risk Buffer (CRB) | 6.5% |
| Gross Income Growth | 26.42% |
Glossary
Contingent Risk Buffer (CRB): A specific reserve within the RBI's capital framework designed to cover unexpected financial risks; it is maintained within a 4.5% to 7.5% range of the balance sheet.
Economic Capital Framework (ECF): The governance rules that determine how much of the RBI's realized equity is retained and how much is distributed to the government.
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