{"id":18042,"date":"2026-05-22T19:43:07","date_gmt":"2026-05-22T19:43:07","guid":{"rendered":"https:\/\/saharanews.in\/2026\/05\/22\/rbis-record-dividend-payout-of-rs-2-87-lakh-crore-how-will-it-help-government-amid-middle-east-crisis\/"},"modified":"2026-05-22T19:43:07","modified_gmt":"2026-05-22T19:43:07","slug":"rbis-record-dividend-payout-of-rs-2-87-lakh-crore-how-will-it-help-government-amid-middle-east-crisis","status":"publish","type":"post","link":"https:\/\/saharanews.in\/?p=18042","title":{"rendered":"RBI\u2019s record dividend payout of Rs 2.87 lakh crore: How will it help government amid Middle East crisis?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-131265645,imgsize-79570,width-400,height-225,resizemode-4\/dividend-payout.jpg\" alt=\"RBI\u2019s record dividend payout of Rs 2.87 lakh crore: How will it help government amid Middle East crisis?\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>The <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/reserve-bank-of-india\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">Reserve Bank of India<\/a> (RBI) has announced a record dividend payout of Rs 2.87 lakh crore to the government for FY 2026-27. The payout comes at a time when the economy is dealing with the effects of the US-Iran war and global oil price shock.<!-- --> The dividend announced on Friday is the highest ever and stands 6.7% above the Rs 2.69 lakh crore transferred during FY2024-25.<span class=\"id-r-component br\" data-pos=\"5\"\/>The RBI\u2019s surplus transfer alone contributes nearly 91% of the budgeted non-tax revenue under the category of \u2018dividend\/surplus from the Reserve Bank of India, nationalised banks and financial institutions\u2019 for FY27.<span class=\"id-r-component br\" data-pos=\"7\"\/>With additional dividend inflows expected from public sector banks and financial institutions, the government\u2019s projected receipts of Rs 3.16 lakh crore under this category for 2026-27 are likely to be exceeded comfortably, particularly as state-run banks have reported strong earnings.<span class=\"id-r-component br\" data-pos=\"11\"\/>Public sector banks collectively posted a record net profit of Rs 1.98 lakh crore, up 11.1%, marking the fourth straight year of combined profitability for PSU lenders.<span class=\"id-r-component br\" data-pos=\"13\"\/><\/p>\n<p><h2>How does RBI\u2019s record dividend payout help the government?<\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"15\"\/>The RBI\u2019s dividend payout is the surplus profit that it transfers to the central government after setting aside funds for reserves and contingency buffers. It is important because it boosts the government\u2019s non-tax revenue, in turn helping manage the fiscal deficit, and provides additional room for public spending without increasing borrowing.<span class=\"id-r-component br\" data-pos=\"18\"\/> <span class=\"id-r-component br\" data-pos=\"21\"\/>Experts believe that the RBI\u2019s record surplus transfer will offer only partial support to the government\u2019s strained fiscal position amid the continuing crisis in West Asia.<span class=\"id-r-component br\" data-pos=\"23\"\/>DK Srivastava, Chief Policy Advisor, EY India told TOI, \u201cThis reflects a modest increase in non-tax revenues of the government and is expected to help partially offset the likely rise in government subsidies, particularly on food, fertilisers and petroleum, in the context of the ongoing West Asian crisis.\u201d<span class=\"id-r-component br\" data-pos=\"26\"\/>\u201cIn 2025\u201326, RBI\u2019s gross income increased by 26.4%, while net income rose by 26.3%. It is also noteworthy that the RBI has steadily raised the share of gold in its foreign exchange reserves over time, from 5.9% in 2020\u201321 to 16.7% in 2025\u201326,\u201d he added.<span class=\"id-r-component br\" data-pos=\"28\"\/>Aditi Nayar, Chief Economist at ICRA believes that compared with the Budget estimates, fiscal pressures are still expected to remain elevated due to the likelihood of higher spending on fuel and fertiliser subsidies, along with lower tax revenues and reduced dividends from oil marketing companies amid the ongoing West Asia conflict.<span class=\"id-r-component br\" data-pos=\"31\"\/>\u201cWhile the Economic Stabilisation Fund and customs duty hikes on gold and silver imports are likely to provide some cushion, we expect the government of India to exceed the budgeted fiscal deficit target for FY27 of 4.3 per cent of GDP by 40 bps, assuming an average crude oil price of USD 95\/barrel in the fiscal,\u201d she said according to a PTI report.<span class=\"id-r-component br\" data-pos=\"33\"\/>According to Devendra Kumar Pant, who is the Chief Economist at India Ratings &amp; Research, the larger surplus transfer is likely to ease some of the fiscal pressure arising from the prevailing geopolitical tensions.<span class=\"id-r-component br\" data-pos=\"36\"\/>Pant further noted that the RBI\u2019s transfer would have been Rs 64,518 crore higher if the central bank had maintained the contingency risk buffer at last year\u2019s level of Rs 44,862 crore. He explained that allocating a larger amount towards the CRB would strengthen the RBI\u2019s ability to intervene in financial markets depending on evolving domestic and global macroeconomic conditions.<span class=\"id-r-component br\" data-pos=\"38\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/rbis-record-dividend-payout-of-rs-2-87-lakh-crore-how-will-it-help-government-amid-middle-east-crisis\/articleshow\/131265583.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) has announced a record dividend payout of Rs 2.87 lakh crore to the government for FY 2026-27. The payout comes at a time when the economy is dealing with the effects of the US-Iran war and global oil price shock. The dividend announced on Friday is the highest ever&#8230;<\/p>\n","protected":false},"author":1,"featured_media":18043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-18042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/18042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18042"}],"version-history":[{"count":0,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/18042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/media\/18043"}],"wp:attachment":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}