RBI Governor Sanjay Malhotra Chairs 623rd Central Board Meeting in Mumbai

• The Reserve Bank of India held its 623rd Central Board meeting in Mumbai under the chairmanship of RBI Governor Sanjay Malhotra.
• During the meeting, the Central Board reviewed the global and domestic economic environment, including potential risks affecting the economic outlook.
• The Board also discussed and approved the RBI’s annual accounts for the financial year 2025–26.

RBI’s Income and Balance Sheet Register Strong Growth

• According to the RBI, the central bank’s gross income increased by 26.42 per cent compared to the previous financial year.
• Expenditure before risk provisions also rose by 27.60 per cent during the same period.
• The RBI reported that its net income before risk provisions and transfer to statutory funds stood at ₹3.95 lakh crore in FY 2025–26, compared to ₹3.13 lakh crore in FY 2024–25.
• Meanwhile, the RBI’s balance sheet expanded by 20.61 per cent to reach ₹91.97 lakh crore as of March 31, 2026.

RBI Approves Surplus Transfer to Central Government

• The Central Board approved the transfer of a surplus amount of ₹2.86 lakh crore to the Central Government for the accounting year 2025–26.
• This surplus transfer is one of the largest payouts made by the RBI and is expected to support the government’s fiscal position.

Contingent Risk Buffer Maintained at 6.5%

• The Board also approved the transfer of ₹1.09 lakh crore to the Contingent Risk Buffer (CRB).
• The RBI stated that the CRB has been maintained at 6.5 per cent of the balance sheet under the revised Economic Capital Framework.
• The Contingent Risk Buffer acts as a financial safeguard to protect the central bank against unexpected economic and financial risks.

Focus on Economic Stability and Financial Resilience

• The discussions during the meeting reflected the RBI’s continued focus on maintaining macroeconomic stability, strengthening financial resilience, and managing emerging global and domestic economic challenges.
• The Central Board meeting is considered one of the most important annual policy and financial review meetings of the Reserve Bank of India.