Jalan panel suggests transfer of RBI’s surplus over 3-5 years

New Delhi, August 14 

The Bimal Jalan committee, constituted to assess the adequate size of capital reserves that the RBI should hold, has finalised its report, sources said on Wednesday.

The panel’s term was extended after the transfer of former Economic Affairs Secretary Subhash Chandra Garg to the Power Ministry.

The transfer took place when the panel was in midst of finalising the report. The vacancy was filled by newly appointed Finance Secretary Rajiv Kumar for finalisation of the report. As per sources, the recommendations have been “more or less” finalised and there will not be another meeting.

“We have discussed everything. Now, it is the final report. It would be difficult to tell what is the exact amount of transfer or the calculation. Transfer would be in a phased manner as is the practice,” the sources said.

The report would be submitted to the RBI in the next few days, they added.

The six-member panel, under former RBI Governor Jalan was appointed on December 26, 2018, to review the economic capital framework (ECF) for the Reserve Bank of India (RBI) after the Finance Ministry wanted the central bank to follow global best practices and transfer more surplus to the government.

Besides surplus capital, the government is expecting Rs 90,000-crore dividend from the RBI in the current financial year as against Rs 68,000 crore received last fiscal. — PTI