Finance Secretary Rajiv Kumar likely to represent government in Bimal Jalan panel

NEW DELHI: Finance secretary Rajiv Kumar is expected to be the new government representative in the committee set up to review the Reserve Bank of India’s economic capital framework, replacing former economic affairs secretary Subhash Chandra Garg who was transferred to the power ministry in a bureaucratic shuffle last week.

The committee, headed by former RBI governor Bimal Jalan, is expected to get an extension before it finalises its report, said sources.

Kumar, who was earlier financial services secretary, was designated finance secretary on Tuesday. Garg was learnt to have submitted a dissent note on the panel’s recommendations.


“He (Kumar) is already on the RBI board and has been able to negotiate well with the regulator on various issues without any acrimonious situation,” said a government official, who did not wish to be identified. “Kumar, as financial services secretary, has been engaging with the RBI in multiple discussions over various matters.”

After Garg’s transfer ET had reported that the panel could hold another meeting before submitting its report to the RBI. The most recent meeting was held on July 17.

Atanu Chakrobarty, the newly appointed economic affairs secretary, has yet to be appointed to the RBI’s board. He has had limited interactions with the central bank in his previous role.

The committee was tasked with examining the central bank’s requirements on provisions, reserves and buffers. That would determine how much of the reserves could be transferred to the government.