The award, which was announced on Monday, led Dhoni to offer prayers at Ranchi"s ancient Deori Temple. Dhoni is the second cricketer after Sachin Tendulkar to receive this award.
"This is really a moment of happiness for Jharkhand that Dhoni is being awarded with the Rajiv Gandhi Khel Ratna award. He deserves it," said Jharkhand Chief Minister Madhu Koda.
"We will celebrate along with our students and sports department of the school today," said Rishabh Banerjee, the sports teacher at DAV School.
Sanjit, a student said: "I am proud. He was a student of our school. He had the potential of getting the Rajiv Gandhi Khel Ratna."
The award is being given to Dhoni for winning the inaugural World Twenty20 Cup in 2007 and for leading the Indian one-day team to a rare tri-series win over Australia in Australia early this year.
The 27-year-old is expected to join the team for five one-dayers in Srilanka. starting in Colombo on July 23.
BCCI President Sharad Pawar also hailed Dhoni for his latest honour.