Punjab Finance Minister and AAP leader Harpal Singh Cheema on Saturday attacked the BJP-led Centre over the RBI’s record dividend transfer of Rs 2.87 lakh crore, alleging that the Narendra Modi-led Centre was increasingly treating the central bank as its “personal treasury” to manage fiscal pressures while denying states their rightful share.
His remarks came a day after the RBI announced a record surplus transfer of Rs 2.87 lakh crore to the Centre for the year ended March 2026, providing a major fiscal boost amid rising import costs and supply-chain disruptions linked to the Middle East war.
Cheema claimed that since 2014, the Centre had drawn nearly Rs 14.29 lakh crore from the RBI, with more than half of that amount transferred in 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? The rights of the states must be protected, and the Central Government should not deprive states of their rightful share,” Cheema said in a video statement.
He argued that RBI surpluses are generated through economic activity across states and should not remain entirely centralised.
Highlighting the rise in annual transfers, Cheema pointed out that the RBI transferred Rs 2.10 lakh crore in 2023-24, Rs 2.68 lakh crore in 2024-25 and now nearly Rs 2.87 lakh crore in 2025-26, with the last three years accounting for more than 53 per cent of all transfers 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. This raises serious questions about fiscal management and the long-term institutional strength of the central bank,” he said.
Calling the issue a challenge to cooperative federalism, Cheema said states were facing the same global uncertainties and supply shocks as the Centre while also carrying welfare obligations, inflation pressures and rising expenditure.
“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 said.
Cheema also questioned the Centre’s broader economic management, alleging that despite repeated transfers from the RBI, people continued to face high fuel and LPG prices and inflation.
“The economic crisis of the nation is before the country today. Withdrawal of Rs 2.87 lakh crore out of the collection from all states is very dangerous. The BJP is trying to dismantle the federal structure of the country. PM Modi and the BJP should clear their stand on the economic system of the country. It seems that the economic system of the country is getting ruined gradually,” he said.
Expressing concern over the RBI’s financial strength, Cheema said reducing the fiscal deficit should not come at the cost of weakening the central bank’s reserves and policy flexibility.
“The RBI serves as the nation’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 added.
Urging the RBI leadership to protect the institution’s autonomy, Cheema said, “India cannot aspire to build a strong and resilient economy with a weakened central bank and financially constrained states.”
He also called on PM Modi to explain the state of the economy and address concerns over inflation and rising fuel prices despite repeated financial transfers from the RBI.
– Ends
(with inputs from PTI)
