Overview
- The Reserve Bank of India’s central board approved a record surplus transfer of Rs 2.87 lakh crore to the Centre for 2025-26 while setting the Contingent Risk Buffer (CRB) at 6.5% of its balance sheet.
- The RBI’s balance sheet grew about 20.6% to roughly Rs 91.97 lakh crore, which raised available surplus and let the board move Rs 1,09,379.64 crore into the CRB for FY2025-26 compared with Rs 44,861.70 crore a year earlier.
- Calculations reported by The Indian Express show the decision to set the CRB at 6.5% rather than 7.5% increased the dividend by about Rs 92,000 crore versus what the Centre would have received under a 7.5% buffer.
- Opposition leaders publicly accused the RBI of handing the government a political and fiscal boost, with Congress spokesperson Jairam Ramesh saying the transfer showed the Centre’s finances were weaker than portrayed.
- The CRB is a rainy-day provision the RBI holds against unexpected losses, and the revised Economic Capital Framework gives the bank a 4.5–7.5% range to set that buffer, a change that links central-bank provisioning choices directly to short-term government receipts.