New Delhi, May 19 -- India's central bank may transfer a record surplus of nearly 3 trillion rupees ($31.2 billion) this week to the government, economists estimated, providing Asia's third-largest economy a vital buffer as the Iran war escalates energy prices.

The Reserve Bank of India's board will meet Friday to approve the dividend, according to people familiar with the matter who asked not to be identified as the information is not public. The central bank didn't immediately respond to an email seeking comment.

The payout is expected to surpass last fiscal's 2.7 trillion rupees, according to a majority of the 12 economists surveyed by Bloomberg News. Some estimates run as high as 3.4 trillion rupees.

The surplus, generated through ...