During its 623rd Central Board meeting in Mumbai, the RBI approved a historic surplus transfer of 2.87 lakh crore Rupees to the Indian Government for the financial year ended March 31, 2026.
The approved payout represents a 6.6 percent increase compared to the previous year's transfer of 2.69 lakh crore Rupees, though it remained lower than the Union Budget's dividend expectation of 3.16 lakh crore Rupees.
To guarantee financial stability amid volatile global trends, the Contingent Risk Buffer was maintained at 6.5 percent of the balance sheet, which expanded by 20.61 percent to reach 91.97 lakh crore Rupees.
This record-high payout was heavily supported by a 26.42 percent year-on-year growth in the central bank's gross income, driven by liquidity injections and large bond holdings.
For competitive exams, understanding the fiscal impact of central bank dividends is crucial as it directly affects the government's fiscal deficit management and development spending capacity.
Key Facts / Static GK
Bimal Jalan Committee: Recommended the Economic Capital Framework range of 4.5 percent to 7.5 percent for the Contingent Risk Buffer.
Section 47 of the RBI Act, 1934: Mandates the transfer of surplus profits from the RBI to the Central Government.
Practice Quiz — 26 May 2026
Q1. Under the newly issued RBI device lock rules for financed devices, what is the penalty rate per hour that a lender must pay the borrower if they fail to restore phone features within one hour of clearing the outstanding dues?
Answer: (D) 250 Rupees per hour — Once a borrower clears the outstanding dues, the restricted features must be restored within 1 hour. If the lender fails to unblock the phone within this hour, they must compensate the borrower at a rate of 250 Rupees per hour until the issue is resolved.
Q2. With reference to the RBI's FY26 surplus transfer, which of the following statements is/are correct? (1) The Contingent Risk Buffer was maintained at the upper boundary of 7.5 percent of the total balance sheet. (2) The transfer of surplus profits is legally mandated under Section 47 of the RBI Act, 1934.
Answer: (B) Only 2 — Statement 1 is incorrect because the Contingent Risk Buffer was maintained at 6.5 percent (not 7.5 percent) of the balance sheet size. Statement 2 is correct because Section 47 of the RBI Act, 1934, legally defines and mandates the transfer of surplus profits to the Central Government.
Q3. What is the total financial budget allocated for the implementation of the Bharat Audyogik Vikas Yojana (BHAVYA) Scheme over its six-year operational timeline?
Answer: (C) 33,660 crore Rupees — The BHAVYA Scheme, designed to set up 100 world-class plug-and-play industrial parks across India, has been allocated a total financial outlay of 33,660 crore Rupees to be implemented over six years (2026-27 to 2031-32).
Q4. According to the World Cities Report 2026, what was the estimated homelessness rate per 10,000 people recorded for India, United States, and China respectively?
Answer: (A) India: 13, US: 20, China: 21 — The World Cities Report 2026 noted that homelessness remains a major global concern, with rates per 10,000 people standing at 13 in India, 20 in the United States, and 21 in China.
Q5. What is the exact name of the new 10 billion dollar crisis relief facility launched by the Asian Infrastructure Investment Bank (AIIB) in May 2026?
Answer: (B) Energy, Food Security and Economic Resilience Facility (EFSERF) — In May 2026, the Asian Infrastructure Investment Bank (AIIB) officially launched the 'Energy, Food Security and Economic Resilience Facility (EFSERF)' with an outlay of up to 10 billion US dollars over two years to support member nations impacted by the economic effects of conflicts in the Middle East.
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