‘Don’t Weaken RBI’: Punjab FM Harpal Singh Cheema Warns Centre Over Record Dividend

‘Don’t Weaken RBI’: Punjab FM Harpal Singh Cheema Warns Centre Over Record Dividend Published By, Last Updated: May 23, 2026, 14:29 IST Punjab Finance Minister Harpal Singh Cheema said that amid pressure on the currency and the global financial environment, RBI should ideally maintain a stronger financial cushion. Harpal Singh Cheema Calls for Fiscal Fairness in RBI Dividend Sharing Punjab Finance Minister Harpal Singh Cheema has expressed concern over the Centre taking an unprecedented dividend of nearly Rs 2.87 lakh crore from the Reserve Bank of India, warning that excessive withdrawal of RBI reserves could weaken the country’s long-term economic resilience. Speaking in Chandigarh, Cheema said the extraordinary transfer should also be shared with states in the spirit of cooperative federalism and fiscal fairness. Concerns over record RBI dividend Referring to reports that the RBI transferred nearly Rs 2.87 lakh crore to the Union Government from the central bank’s total income of around Rs 4 lakh crore, Cheema said this was among the highest dividend transfers made by the RBI since its inception.

He said the move raised serious concerns at a time when citizens were already dealing with high fuel prices, inflationary pressure and repeated calls for austerity. “First, such windfall gains are currently kept outside the divisible pool of taxes shared with the states. If the Union Government is facing economic pressures due to global uncertainties and supply shocks, the states are facing the same challenges," Cheema stated. He added that extraordinary gains of this nature should be distributed among states as well. “Extraordinary gains of this nature should be shared with the states in the spirit of cooperative federalism and fiscal fairness," he said. Weakening RBI The Punjab Finance Minister also raised concerns about the impact of such transfers on the financial strength of the RBI. “While reducing the fiscal deficit is important, it must not come at the cost of weakening the financial strength and institutional firepower of the Reserve Bank of India," Cheema said.

He described the RBI as the country’s economic shock absorber and monetary stabiliser during periods of crisis. “Excessive extraction of reserves may weaken the long-term resilience and economic immunity of the country," he warned. Calls for stronger financial buffer Cheema further said that amid pressure on the currency and the global financial environment, the RBI should ideally maintain a stronger financial cushion. “The central bank must preserve adequate reserves and policy flexibility to safeguard financial stability," he said. He urged RBI leadership to protect the institution’s autonomy and credibility while taking financial decisions. ‘India cannot build strong economy with weakened RBI’ Calling for protection of the RBI’s institutional independence, Cheema appealed directly to the RBI Governor. “I urge the RBI Governor to ensure that the institutional independence, strength and long-term credibility of the Reserve Bank of India remain paramount," he said. Cheema added that India’s economic future depended on maintaining a strong and independent central bank.

“India cannot aspire to build a strong and resilient economy with a weakened central bank," he stated. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit Location: Punjab, India, India First Published: May 23, 2026, 14:29 IST News india ‘Don’t Weaken RBI’: Punjab FM Harpal Singh Cheema Warns Centre Over Record Dividend Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy Loading comments...