Bimal Jalan panel, formed to suggest guidelines for transfer of the RBI's surplus funds to the government, delayed its report scheduled to be submitted on Monday.
Bimal Jalan panel, formed to suggest guidelines for transfer of the RBI’s surplus funds to the government, delayed its report scheduled to be submitted on Monday, global news agency Reuters reported citing an unidentified official. The report has now been deferred for the fourth time. The six-member panel, headed by Former RBI Governor Bimal Jalan, which was originally supposed to submit the report in April, deferred the report owing to lack of consensus, it added. The report would now be submitted post-budget in July, it added. The next meeting will take place in July this year.
The panel was constituted on December 26 last year so as to review the Economic Capital Framework (ECF) for the central bank. The first meeting of the panel was held on January 8. The committee was actually was supposed to submit the report in 90 days from the holding of its first meeting, before getting an extension of its term. The ECF determines the surplus capital transfer of the RBI to the government. While the government batted for increased transfer of the excess capital and wanted it to follow the global best practices, the RBI said that it could lead to an increased risk for the institution.
The issue of capital transfer turned into one of the controversial issues between the government and the former RBI governor Urjit Patel last year. In FY18, the central bank had transferred Rs 40,659 crore including an interim dividend of Rs 10,000 crore in March 2018.
Other than Bimal Janal, the other prominent members of the committee 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.