RBI balance sheet expands 20.6 per cent; central bank transfers Rs 2.86 lakh crore surplus to government – Firstpost

The Reserve Bank of India’s balance sheet expanded by 20.61 per cent in FY2025-26 to Rs 91.97 lakh crore, reflecting strong growth in the central bank’s operations amid a volatile global macroeconomic environment, according to the RBI’s latest annual accounts released after the 623rd meeting of its Central Board.

The meeting, chaired by RBI Governor Sanjay Malhotra in Mumbai on May 22, reviewed both domestic and global economic conditions, including risks to the outlook.

The central bank said its gross income rose 26.42 per cent year-on-year during FY26, while expenditure before risk provisions increased 27.60 per cent. Net income before risk provisioning and transfers to statutory funds stood at Rs 3,95,972.10 crore, up from Rs 3,13,455.77 crore in FY25.

In a significant move aimed at strengthening financial resilience, the RBI decided to transfer Rs 1,09,379.64 crore towards the Contingent Risk Buffer (CRB) for FY26 — more than double the Rs 44,861.70 crore transferred in the previous year.

The CRB, maintained under the revised Economic Capital Framework (ECF), will remain at 6.5 per cent of the RBI’s balance sheet size. The framework allows the CRB to be maintained within a range of 4.5 per cent to 7.5 per cent.

The central bank said the decision was taken after considering “current macroeconomic factors, financial performance of the Bank and maintenance of appropriate risk buffers.”

Following these allocations, the RBI Central Board approved a surplus transfer of Rs 2,86,588.46 crore to the Central Government for FY2025-26.

The higher provisioning towards contingency reserves indicates the RBI’s increasing focus on safeguarding the balance sheet against external shocks, currency volatility, global financial instability, and domestic macroeconomic risks.

The RBI’s balance sheet expansion was driven by continued growth in foreign exchange reserves, liquidity operations, and currency management activities during the financial year.

The meeting was attended by RBI Deputy Governors Swaminathan J., Dr Poonam Gupta, Shirish Chandra Murmu and Rohit Jain, along with senior government nominees and directors on the Central Board.