RBI May Transfer Record Rs 3.5 Lakh Crore Dividend To Centre For FY27 Amid Rupee Volatility Gains

The Reserve Bank of India is expected to provide the Centre with its highest-ever dividend payout, potentially giving a major fiscal boost at the beginning of FY27. Sources said the RBI board is set to meet on Friday to review the surplus transfer for FY26, with the payout likely to range between Rs 2.7 lakh crore and Rs 3.5 lakh crore. If approved, the transfer would exceed the previous record dividend of Rs 2.69 lakh crore paid for FY25.

The substantial increase in surplus follows a year in which the central bank gained from currency market volatility, foreign exchange operations and investment returns. A major factor behind the expected payout was the nearly 10% fall in the rupee against the US dollar during FY26, which expanded the RBI’s balance sheet and led to higher valuation gains on foreign currency assets.

The RBI is also believed to have earned profits through active intervention in currency markets by selling dollars to limit excessive weakness in the rupee.

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India’s foreign exchange reserves increased by around 3% during FY26 to nearly $688 billion, further strengthening the central bank’s income profile. Along with forex-related gains, returns from investments and currency printing operations are also understood to have contributed to the likely surplus.

Over the past three financial years, RBI dividend transfers to the government have more than tripled, becoming a key source of non-tax revenue for New Delhi.

Market participants are also closely tracking whether the RBI makes any changes to its contingency risk buffer. The central bank currently maintains a contingency buffer of up to 7.5%, and any reduction in that allocation could further increase the transferable surplus. The RBI has not responded to queries from Profit regarding the anticipated payout.