Centre treating RBI as ‘personal treasury’, states denied rightful share of dividend: Punjab FM Cheema

Punjab Finance Minister Harpal Singh Cheema on Saturday criticised the BJP-led Centre over the Reserve Bank of India's record Rs 2.87 lakh crore dividend payout, alleging that the Narendra Modi government was increasingly treating the central bank as a “personal treasury” to manage fiscal pressures while denying states their rightful share despite India's federal structure.

The remarks came a day after the RBI (Reserve Bank of India) announced a record surplus transfer of Rs 2.87 lakh crore to the Centre for the financial year ended March 2026, providing a significant fiscal boost to the Union government amid rising import costs and global economic uncertainties linked to the conflict in West Asia.

Cheema claimed that the Centre had received nearly Rs 14.29 lakh crore from the RBI since 2014 and alleged that more than half of that amount had been transferred during the last three years alone.

“The financial structure of the country is based on federalism. Every Indian contributes to the economy, and every state contributes to national growth and revenue generation. Then why are states denied their rightful share of such extraordinary gains?” Cheema said in a video statement.

Questions over growing RBI transfers

Highlighting the sharp rise in transfers from the central bank, Cheema said the RBI had transferred Rs 2.10 lakh crore in 2023-24, Rs 2.68 lakh crore in 2024-25 and nearly Rs 2.87 lakh crore in 2025-26.

According to him, these three years alone accounted for more than 53 per cent of the total funds transferred by the RBI to the Centre since 2014.

“The scale and frequency of these transfers are unprecedented. Earlier, such extraordinary withdrawals from RBI reserves were seen only during exceptional circumstances or periods of major financial stress. But now, continuous extraction of RBI surplus has become the norm,” he alleged.

The Punjab minister argued that repeated transfers of RBI surplus raised concerns about fiscal management and the long-term institutional strength of the central bank.

He further claimed that because the RBI's surplus was generated through economic activity across the country, states should receive a share of the funds rather than the entire amount being retained by the Union government.

‘Challenge to cooperative federalism’

Cheema described the issue as a challenge to India's federal framework, arguing that states were facing the same economic pressures as the Centre while also carrying responsibility for welfare programmes, inflation management and development expenditure.

“If the Union government is facing financial pressures due to global uncertainties and supply shocks, states are battling the same challenges while simultaneously handling welfare responsibilities, inflationary pressures and rising expenditure burdens,” he said.

“Federalism cannot mean that states bear the burden while the Centre keeps the entire RBI windfall. Extraordinary gains of this nature should be brought into the divisible pool and shared fairly with all states,” he added.

The minister also accused the Centre of economic mismanagement, claiming that despite receiving substantial funds from the RBI, ordinary citizens continued to face rising fuel and cooking gas prices.

“Despite repeatedly extracting massive funds from the RBI, the BJP government continues burdening ordinary citizens through rising diesel, petrol and domestic cooking gas prices,” he alleged.

Calls for explanation from Centre

Cheema further claimed that the Centre's policies were weakening both the economy and the spirit of cooperative federalism.

He argued that fiscal management should not come at the expense of the RBI's reserve buffers, institutional autonomy and policy flexibility.

“India cannot aspire to build a strong and resilient economy with a weakened central bank and financially constrained states,” he said.

The Punjab finance minister also called on Prime Minister Narendra Modi to explain the state of the economy and rising fuel and LPG prices despite repeated transfers from the RBI.

“When the country faces economic stress and citizens are struggling with inflation, the Prime Minister should address the concerns of people instead of avoiding accountability,” Cheema said.

The Centre had not immediately responded to the allegations.