RBI’s capital size: Panel defers report submission

NEW DELHI: The Bimal Jalan committee, which is looking into the size of capital reserves that the RBI should hold, on Monday again deferred its report submission deadline till the Budget next month.
The six-member panel, under former RBI governor Jalan, was appointed on December 26, 2018, to review the Economic Capital Framework (ECF) for the central bank after the finance ministry wanted the RBI to follow global best practices and transfer more surplus to the government.
The RBI has over Rs 9.6 lakh crore surplus capital with it. Economic affairs secretary Subhash Chandra Garg did not attend Monday’s meeting of the Jalan panel, an official said, adding that the committee would meet one more time before finalising the report.
The ECF panel was mandated to submit its report to the RBI within 90 days of its first meeting which took place on January 8. Following this, the panel was given a three-month extension.
The other key members of the panel include Rakesh Mohan, former deputy governor of RBI as the vice-chairman, finance secretary Subhash Chandra Garg, RBI deputy governor N S Vishwanathan, and two RBI central board members — Bharat Doshi and Sudhir Mankad.
The panel has been entrusted with the task of reviewing the best practices followed by central banks worldwide in making assessment and provisions for risks.
The government and the RBI during the tenure of previous governor Urjit Patel had been at loggerheads over the Rs 9.6 lakh crore surplus capital with the central bank.
The finance ministry was of the view that the buffer of 28% of gross assets maintained by the central bank is well above the global norm of around 14%. Following this, the RBI board in its meeting on November 19, 2018, decided to constitute a panel to examine Economic Capital Framework.