The Reserve Bank of India (RBI) is expected to announce its highest-ever dividend payout to the central government this year, giving the Centre additional fiscal support amid challenges linked to the ongoing Middle East crisis, according to sources.
Last year, the RBI transferred a record dividend of Rs 2.69 lakh crore to the government for 2024-25, marking a 27% increase over the Rs 2.11 lakh crore payout in the previous year.
Sources said the RBI is likely to take a decision on the dividend amount during its board meeting expected later this month.
The transferable surplus is calculated under the revised Economic Capital Framework (ECF) approved by the RBI’s Central Board. The framework requires the Contingent Risk Buffer (CRB) to remain within a range of 4.50% to 7.50% of the RBI’s balance sheet.
According to Budget documents, the Centre expects to receive Rs 3.16 lakh crore in dividends and surplus transfers from the RBI, nationalised banks, and financial institutions during 2026-27, an increase of around 3.75% over the current fiscal year.
Sources indicated that the final dividend payouts could exceed Budget Estimates, supported by strong financial performance from public sector banks (PSBs) during FY26.
PSBs reported record profitability in FY26, driven by improved asset quality, healthy credit growth, and higher income. Aggregate operating profit reached Rs 3.21 lakh crore, while aggregate net profit rose 11.1% to a historic high of Rs 1.98 lakh crore, marking the fourth consecutive year of overall profitability for PSBs.
Budget estimates also showed that dividends from public sector enterprises and other investments are expected to reach Rs 75,000 crore, compared to Rs 71,000 crore in the current fiscal year.
Dividend income and RBI surplus transfers are classified under non-tax revenue. Overall, the Centre expects non-tax revenue of Rs 6.66 lakh crore next fiscal, while tax revenue has been estimated at Rs 28.66 lakh crore, up 7.18% from Rs 26.74 lakh crore in 2025-26.
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