Govt budgets another bonanza dividend at Rs 2.56 lakh crore from RBI and state-run banks in FY26

RBi dividend target for FY26

The Centre expects to receive Rs 2.56 lakh crore from the Reserve Bank of India and public sector banks in FY26, finance minister Nirmala Sitharaman said in her Budget speech on February 1.

The dividend payout for the year is higher than last year’s when RBI gave the government Rs 2.1 lakh crore, double the total dividend Budgeted for FY25.

The RBI dividend is a major revenue source for the government. As the manager of its finances, every year, the RBI pays a dividend to government to help from its surplus profit.

In the current year, the RBI dividend has helped keep the fiscal deficit in check despite a decline in nominal growth and a faster pick-up in revenue expenditure.

In FY24, the final dividend was nearly double the Rs 48,000 crore in the budget estimate.

The higher dividend for FY26 is also along expected lines, as dollar sales also tend to bring revenue for the government and the central bank has been selling the American currency to support a depreciating rupee.

Experts indicate that final dollar sales are likely to be $250 billion.

India’s forex reserves were at $623 billion as of January 17, compared with $700 billion in October.