The Reserve Bank of India (RBI) is expected to pay the highest-ever dividend to the government, providing the Centre with a fiscal cushion to address challenges arising from the ongoing West Asia crisis, sources said.

Last year the RBI made a record dividend payout of ₹2.69 lakh crore to the Centre for 2024-25, 27 per cent higher than ₹2.11 lakh crore transferred in the previous year.

RBI is likely to decide about the dividend quantum in its board meeting expected to be held this month, sources said.

The transferable surplus for any financial year is arrived at on the basis of the revised Economic Capital Framework (ECF) as approved by the Central Board of the RBI.

The revised framework stipulates that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 7.50 to 4.50 per cent of the RBI’s balance sheet.

As per the Budget documents, the Centre expects ₹3.16 lakh crore in dividends and surpluses from the Reserve Bank of India, nationalised banks, and financial institutions in 2026-27, up about 3.75 per cent over the current fiscal.

The government had made conservative estimates, sources said, dividend payouts would exceed the Budget Estimate for FY27 as public sector banks (PSBs) have also posted a record profit in FY26.

Improved asset quality, healthy credit expansion and higher income contributed to improved profitability of PSBs during FY 2025–26. Aggregate operating profit reached ₹3.21 lakh crore, while aggregate net profit increased by 11.1 per cent to a historic high of ₹1.98 lakh crore, marking the fourth consecutive year of aggregate profitability for PSBs.

Budget documents further showed that dividends from public sector enterprises and other investments are estimated at ₹75,000 crore, up from ₹71,000 crore in the current fiscal.

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

In all, the Centre expects ₹6.66 lakh crore as non-tax revenue next fiscal, lower than 6.67 lakh crore in 2025-26.

The revenue from taxes has been pegged at ₹28.66 lakh crore, up 7.18 per cent from ₹26.74 lakh crore in 2025-26.

Published on May 13, 2026