Mumbai, May 28 -- The Reserve Bank of India's (RBI) record dividend payout of Rs 2.87 lakh crore is expected to directly repair the government's balance sheet at a time when rising global energy prices and prolonged geopolitical tensions are putting pressure on India's fiscal position, according to Anindya Banerjee, Head of Commodities and Currency Research at Kotak Securities.

Speaking to ANI in an exclusive interview, Banerjee said the fiscal strain caused by elevated crude oil prices and fuel tax reductions would be partly cushioned by the central bank's surplus transfer to the government.

Terming the payout a "substantial amount," Banerjee said, "A chunk of that impact has been absorbed by the government by way of cutting the excise...