The 623rd meeting of the RBI Central Board of Directors, presided over by Governor Sanjay Malhotra, was held in Mumbai, and the decision was made during that meeting.
The annual accounts of the central bank for FY2025-26 were authorised after the Central Board examined the local and international economic climate, including threats to the economic forecast.
The Reserve Bank of India reported a 20.61 percent increase to Rs 91.97 lakh crore on its balance sheet as of March 31, 2026.
Expenditure before risk provisions increased by 27.60% in FY26 compared to FY25, while the central bank’s total income increased by 26.42 percent.
The net income for FY26 was 3,95,972.10 crore, an increase from 3,13,455.77 crore in FY25, before risk provisions and transfer to statutory funds.
It is possible to keep the Contingent Risk Buffer (CRB) between 4.5% and 7.5% of the total size of the balance sheet, according to RBI’s statement on the updated Economic Capital Framework (ECF).
The Central Board authorised a transfer of Rs 1,09,379.64 crore to the Contingent Risk Buffer for FY26, considering the current macroeconomic climate, the bank’s financial performance, and the necessity of sufficient risk provisioning.
In contrast, the preceding fiscal year set aside 44,861.70 crore for the buffer.
The Reserve Bank of India (RBI) transferred a surplus of 2,86,588.46 crore rupees to the federal government for fiscal year (FY) 26 and kept its contingent risk buffer at 6.5% of its total balance sheet size.
The government’s fiscal position is anticipated to be strengthened and extra financial flexibility will be granted by the record payout.
The Reserve Bank of India (RBI), public sector banks, and other financial institutions are expected to transfer a surplus of Rs 3.16 lakh crore to the central government in the fiscal year 27 (FY27), as per the budget estimates.
Image Credit: News Arena
Disclaimer: All news articles are sourced through valid sources, and Business Unlimited (BU) doesn’t have any exclusive rights on these pieces. If BU features any exclusive story or article, it will be marked as Exclusive Story.
