Bimal Jalan committee, constituted to decide the appropriate capital reserves for the Reserve Bank, will put out a well-researched report by the end of June, former RBI deputy governor Rakesh Mohan said.
Bimal Jalan committee, constituted to decide the appropriate capital reserves for the Reserve Bank, will put out a well-researched report by the end of June, former RBI deputy governor Rakesh Mohan said. The report will be finalised on the same day, he told CNBC TV18 in an interview. “I am hoping that the next meeting, which is on June 12, will be the last meeting. So, I hope that after that last meeting, I will be free to talk to you on that issue,” the former RBI governor also said. A few days back, current RBI governor Shaktikanta Das had said that the committee is in advanced stages of deliberations and the report will be shortly submitted.
It was on December 26, 2018, the six-member committee led by Bimal Jalan was appointed to review the economic capital framework for the central bank. Other than Bimal Jalan and Rakesh Mohan, finance secretary Subhash Chandra Garg, RBI deputy governor NS Vishwanathan, and two RBI central board members – Bharat Doshi and Sudhir Mankad are the other members.
“The RBI is a crucial part of maintaining the economic and financial stability of the country. There has been a tendency in the past few years to look at the central bank in an independent sense or in contrast to the government and I do think it is a mistake”, he also told CNBC TV18.
Under previous Governor Urjit Patel, both RBI and government were in constant tussle on sharing of surplus capital reserves. Both parties were at loggerheads over Rs 9.6-lakh crore surplus capital that the RBI holds over the government demand to part with a good share. The government wanted to use the money for infusing into the cash-starved public sector banks or to meet the fiscal deficit target.