Deepak Shenoy, founder and CEO of Capitalmind, has questioned the Reserve Bank of India over its decision to transfer Rs 2.86 lakh crore as dividend to the Centre, calling the payout “disappointing” despite the central bank posting a significantly larger profit.
In a post shared on X on Friday, Shenoy argued that the RBI had generated close to Rs 4 lakh crore in profit but chose to retain a sizeable portion in its Contingent Risk Buffer (CRB) instead of transferring more funds to the government.
According to Shenoy, the CRB — a reserve maintained by the RBI to tackle unexpected financial shocks, market instability and systemic risks — has never been meaningfully utilised in the past and is unlikely to be needed in the future either.
“A little disappointing that RBI has given just Rs 2.86 lakh crore as a dividend to the government. They had nearly Rs 4 lakh crore of profit. And yet, chose to keep a substantial portion of it into their CRB — a risk buffer they have never had to use ever, and won’t,” Shenoy wrote in his social media post.
Shenoy Urges RBI To Reduce Balance Sheet, Sell Gold Holdings
The market expert further argued that the RBI should consider reducing what he described as an “extremely bloated” balance sheet and monetising part of its gold reserves to enable larger transfers to the government in the future.
“But these hopes, they just remain hopes. We deserve better,” he added.
Shenoy’s comments triggered a debate online, with several users defending the RBI’s cautious stance amid growing global uncertainty and financial volatility.
One user responded by saying, “Never had to use it… but sir, what if they do? All kinds of unprecedented things are happening in our lifetime,” referring to the CRB reserve maintained by the central bank.
Another user questioned the criticism surrounding RBI’s gold reserves, writing, “Not sure why some fund managers are obsessed with RBI’s gold reserves and don’t want them to have more gold. Gold is sold when a house is in crisis, not because the balance sheet is bloated.”
RBI Transfers Record Dividend To Government
The RBI’s transfer of Rs 2.86 lakh crore to the Centre marks the highest-ever surplus payout by the central bank. The transfer comes at a time when the government is preparing to navigate global economic uncertainty, including elevated energy prices and external financial pressures.
While the dividend amount set a new record, it still landed at the lower end of market expectations. Ahead of the announcement, analysts had projected the payout to range between Rs 2.7 lakh crore and Rs 3.5 lakh crore.
In the previous financial year ending March 31, 2025, the RBI had transferred Rs 2.69 lakh crore to the government. Before that, the surplus transfer stood at Rs 2.11 lakh crore in FY24.
The Contingent Risk Buffer remains a key part of the RBI’s economic capital framework, designed to safeguard the financial system against unforeseen crises and currency market disruptions.