Panel On RBI Surplus Reserves To Meet One More Time Before Finalising Report
A panel set up to review the central bank’s economic capital framework will meet one more time this month before it finalises its report.
The committee, whose recommendations could potentially lead to a transfer of funds from the Reserve Bank of India’s balance sheet to the government, is yet to reach a consensus on the amount of capital that the apex bank needs to hold.
The former RBI governor Bimal Jalan-headed panel was unlikely to recommend a large transfer from RBI reserves to the government, BloombergQuint had earlier reported. Set up in December, it was supposed to finalise the recommendations at its meeting on Wednesday.
Most of the panel members, except finance secretary Subhash Chandra Garg, are not in favour of any significant relaxation of the formula that is used to calculate RBI’s capital needs. Garg is said to have written a letter to principal secretary Nripendra Misra seeking the government’s intervention in the panel. Cogencis had first reported about Garg’s letter to the Prime Minister’s Office.
But the Bimal Jalan panel—comprising Rakesh Mohan, Bharat Doshi, Sudhir Mankad and NS Vishwanathan, besides Garg—has not sought any extension to finalise its findings, and will submit its report on RBI reserves by June end, one of the members said requesting anonymity.