India, May 23 -- The Reserve Bank of India (RBI) on Friday approved a record dividend transfer of Rs.2.87 lakh crore to the central government for fiscal year 2026 (FY26) while sharply increasing provisions towards its contingent risk buffer (CRB), signalling a balancing act between supporting public finances and preparing for heightened global economic risks.

The dividend payout, higher than last year's Rs.2.68 lakh crore transfer but slightly below expectations, is expected to provide a significant boost to the Centre's finances at a time of rising pressure from volatile crude oil prices, potential subsidy burdens and slowing economic growth.

However, economists remained divided on whether the transfer would be enough to prevent a wid...