RBI balance sheet surges 20.6% to ₹91.97 lakh crore in FY26
Synopsis
The RBI's balance sheet crossed ₹91.97 lakh crore in FY26 — a 20.6% jump that is more than double the prior year's growth rate. Gold holdings surged 63.8%, domestic investments rose 44.9%, and the central bank declared a record ₹2.87 lakh crore dividend to the Centre, reshaping its asset composition in a single year.
Key Takeaways
The RBI balance sheet expanded 20.6 per cent to ₹91.97 lakh crore as of 31 March 2026 , up from ₹76.25 lakh crore in FY25.
Gold holdings surged 63.8 per cent and domestic investments rose 44.9 per cent during FY26.
The balance sheet now equals 26.4 per cent of GDP — the highest in at least four years.
The RBI transferred ₹1,09,379.64 crore to the Contingency Fund under its Economic Capital Framework.
A record dividend of approximately ₹2.87 lakh crore was declared for the Centre for FY26 .
Domestic assets' share of total assets rose to 29.1 per cent from 25.7 per cent a year earlier.
The Reserve Bank of India (RBI) recorded a sharp 20.6 per cent expansion in its balance sheet during FY26, with total assets rising to ₹91.97 lakh crore as of 31 March 2026, up from ₹76.25 lakh crore a year earlier, according to the central bank's annual report released on Friday, 29 May 2026. The ₹15.72 lakh crore absolute addition marks a sharp acceleration from the 8.2 per cent growth logged in FY25, and takes the RBI's balance sheet to 26.4 per cent of GDP.
What Drove the Expansion
The surge was underpinned by three asset classes: domestic investments jumped 44.9 per cent, gold holdings surged 63.8 per cent, and foreign investments grew 7.9 per cent during the year. The RBI's annual report attributed the overall expansion to liquidity operations, reserve management, and a shift in asset composition.
Domestic assets now account for 29.1 per cent of total assets as of 31 March 2026, up from 25.7 per cent a year earlier — reflecting a faster pace of growth in domestic holdings relative to foreign assets. Foreign currency assets, gold, and loans to overseas financial institutions together constituted the remaining 70.9 per cent, down from 74.3 per cent in the prior year.
Liabilities Side: Revaluation Accounts Lead
On the liabilities side, revaluation accounts rose 63.4 per cent — the steepest increase among liability heads — driven primarily by the sharp appreciation in gold valuations. Notes issued grew 11.8 per cent, deposits expanded 11.6 per cent, and other liabilities climbed 21.1 per cent during FY26.
Contingency Fund and Capital Framework
The RBI transferred ₹1,09,379.64 crore to its Contingency Fund during FY26 under the central bank's Economic Capital Framework. No transfer was made to the Asset Development Fund during the year. The framework stipulates that the contingent risk buffer must remain within a band of 4.5 per cent to 7.5 per cent of the balance sheet.
Record Dividend to the Centre
The RBI declared a record dividend of approximately ₹2.87 lakh crore to the Centre for FY26. The payout is expected to provide the government with fiscal headroom to manage pressures arising from the ongoing West Asia crisis.
Steady Multi-Year Growth Trajectory
The balance sheet's expansion fits a clear upward trend: it stood at ₹63.45 lakh crore at the end of FY23, rose to ₹70.47 lakh crore in FY24, climbed further to ₹76.25 lakh crore in FY25, and has now reached ₹91.97 lakh crore in FY26. The pace of expansion in FY26 is the steepest in at least four years. How the RBI manages this enlarged balance sheet — particularly the domestic asset mix — will be closely watched in the year ahead.
Point of View
A trend gaining momentum among central banks globally. More consequential is the record ₹2.87 lakh crore dividend to the Centre: at this scale, the transfer blurs the line between independent monetary management and fiscal support. The contingency buffer framework exists precisely to prevent that conflation, but with geopolitical stress from the West Asia crisis cited as justification for the payout, the question of where monetary prudence ends and fiscal convenience begins deserves scrutiny.
NationPress
13 Aug 2026
Frequently Asked Questions
By how much did the RBI balance sheet grow in FY26?
The RBI balance sheet grew by 20.6 per cent in FY26, rising by ₹15.72 lakh crore to reach ₹91.97 lakh crore as of 31 March 2026. This was more than double the 8.2 per cent growth recorded in FY25.
What drove the RBI balance sheet expansion in FY26?
The expansion was driven by a 63.8 per cent surge in gold holdings, a 44.9 per cent rise in domestic investments, and a 7.9 per cent increase in foreign investments, according to the RBI's annual report. Liquidity operations and reserve management also contributed.
What is the RBI's Contingency Fund transfer for FY26?
The RBI transferred ₹1,09,379.64 crore to its Contingency Fund during FY26 under the Economic Capital Framework. No transfer was made to the Asset Development Fund during the year.
How large was the RBI dividend to the government in FY26?
The RBI declared a record dividend of approximately ₹2.87 lakh crore to the Centre for FY26. The payout is expected to help the government manage fiscal pressures linked to the ongoing West Asia crisis.
What share of GDP is the RBI balance sheet now?
As of 31 March 2026, the RBI balance sheet stands at 26.4 per cent of India's GDP. The balance sheet has grown steadily from ₹63.45 lakh crore in FY23 to ₹91.97 lakh crore in FY26.
