Mumbai, May 22 -- The Reserve Bank of India on Friday approved a record dividend transfer of Rs.2.87 trillion 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 trillion 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 widening fis...