RBI set to transfer bumper ₹2.5-3 lakh crore dividend to govt, short-term bonds rally

The Reserve Bank of India (RBI) is likely to transfer a bumper dividend to the Central government — in the range of Rs 2.5-3 lakh crore — which has led to a rally in short-term bonds, analysts said on Wednesday.

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The RBI dividend would represent a sharp jump from last year's dividend transfer which was at Rs 2.1 lakh crore.

"The dividend is also likely to be higher than the FY26 budgeted amount of Rs 2.6 lakh crore (Rs 2.6 trillion) expected from the RBI, nationalised banks and financial institutions collectively. The key determinant likely for such a huge dividend could be the upbeat gains from dollar sales," said Rajani Sinha, Chief Economist, CareEdge Ratings.

The gross dollar sales rose notably to $371.6 billion up to February in FY25, compared to $153 billion in the full-year FY24.