The Centre is budgeting a record Rs 3.2 lakh crore in dividends from the RBI and public sector banks in 2026-27, creating a strong non-tax cushion to keep the fiscal deficit in check.For 2025-26, the govt has raised the dividend estimate to Rs 3.04 lakh crore, up Rs 44,590 crore from the budgeted Rs 2.56 lakh crore, driven by higher RBI surplus transfers and stronger PSB profits.The RBI’s payout rose on the back of active forex intervention. Data show it sold about $43.2 billion in spot and non-deliverable forward markets till late Jan 2026 to smooth rupee volatility amid FPI outflows and external pressures. Sold at rates above historical acquisition costs, these dollars delivered sizeable trading gains, lifting surplus available for transfer.PSBs also boosted payouts. In 2024-25, they declared Rs 34,995 crore in dividends, up ~26% year-on-year, tracking a sharp jump in aggregate net profit. With majority ownership, the Centre captured a larger share. SBI led contributions, alongside other large lenders.
