Centre treating RBI as ‘personal treasury’ while squeezing states, says Punjab FM Harpal Cheema

Citing official figures, the Punjab finance minister said the Centre had taken nearly ₹14.29 lakh crore from the RBI since 2014, with more than half of the amount transferred in the last three years alone

Punjab finance minister Harpal Singh Cheema on Saturday criticised the BJP-led Centre over the ₹2.87 lakh crore of dividend announced by RBI, alleging that the Narendra Modi government was increasingly treating the RBI like a “personal treasury” to manage its fiscal deficit while denying states their rightful share despite India’s federal structure.

Punjab finance minister Harpal Singh Cheema said the RBI surplus had been generated through economic activities, transactions and revenue generation taking place across all states. (HT File)

The Reserve Bank of India (RBI) on Friday announced a record dividend of ₹2.87 lakh crore to the government for FY 2026, providing a financial boost for the exchequer amid rising import bills and supply chain disruptions due to the West Asia conflict.

Citing official figures, Cheema said the Centre had taken nearly ₹14.29 lakh crore from the RBI since 2014, with more than half of the amount transferred in the last three years alone.

The finance minister warned that continuous extraction of RBI reserves not only weakened the country’s central bank and long-term financial resilience, but also struck at the spirit of cooperative federalism by financially squeezing states. He said the RBI surplus had been generated through economic activities, transactions and revenue generation taking place across all states, therefore states deserved their rightful share in the funds instead of the Centre keeping the entire amount centralised.