The Reserve Bank of India (RBI) will pay a record Rs 2.87 lakh crore dividend to the government for FY26, providing a capital buffer amid an ongoing US-Israel war with Iran, rising oil prices and pressure on meeting the fiscal deficit target.

RBI's balance sheet expanded by 20.61% to Rs 91.97 lakh crore as on 31 March 2026. 

The dividend or surplus transfer for last year was Rs 2.69 lakh crore, which was 27.4% more than the payout in 2023-24.

The RBI’s payout to the government has been increasing over the years. In 2023-24, it had transferred Rs 2.1 lakh crore in dividends to the government while in 2022-23 it was at Rs 87,416 crore.

The decision on the dividend payout was taken at the 623rd meeting of the central board of directors of RBI under the chairmanship of RBI Governor Sanjay Malhotra.

"The net income, before risk provision and transfer to statutory funds, aggregated Rs 3,95,972.10 crore in FY 2025-26 as against RS 3,13,455.77 crore in FY 2024-25," RBI said in a statement.

The record dividend will come in handy as the government is fighting against an inflated import bill due to a surge in crude prices triggered by the conflict in West Asia, a widening current account deficit, a weakening rupee and foreign fund sell-offs. 

The RBI pays its dividend from income earned on domestic investments, foreign-exchange holdings and fees from printing currency notes.