The Central Board of the Reserve Bank of India has approved a record surplus transfer of ₹2.87 lakh crore to the central government for FY27, supported by a sharp increase in income and expansion of the RBI’s balance sheet.
The decision was taken during the 623rd meeting of the RBI Central Board in Mumbai under the chairmanship of Governor Sanjay Malhotra. The Board also reviewed domestic and global economic conditions along with key risks to the outlook.
RBI Income and Balance Sheet See Strong Growth
The RBI reported a 26.42% year-on-year rise in gross income during FY26, while expenditure before risk provisions increased 27.6%. Net income before risk provisioning and transfers to statutory funds stood at ₹3.96 lakh crore, compared to ₹3.13 lakh crore in FY25.
Meanwhile, the central bank’s balance sheet expanded 20.61% to ₹91.97 lakh crore as of March 31, 2026, reflecting higher operations and asset growth.
Higher Risk Buffer Allocation Under Economic Capital Framework
Under the revised Economic Capital Framework, the RBI must maintain a Contingent Risk Buffer (CRB) between 4.5% and 7.5% of its balance sheet. For FY26, the Board approved a transfer of ₹1.09 lakh crore to the CRB, significantly higher than ₹44,861.7 crore allocated in the previous year.
The CRB was maintained at 6.5% of the balance sheet size, balancing financial stability requirements with surplus distribution.
The record transfer is expected to provide major fiscal support to the government as it manages capital expenditure priorities while pursuing fiscal consolidation targets.
Deputy Governors Swaminathan J, Poonam Gupta, Shirish Chandra Murmu, and Rohit Jain attended the meeting along with other board members.
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