Jalan panel on ECF to meet again this month

A high-level committee set up by the Reserve Bank of India (RBI) on its economic capital framework (ECF) will meet again in August before it submits its recommendations.

With a new member, the committee will reconsider if it should submit its recommendations which were not unanimous after the former finance secretary Subhash Chandra Garg had submitted a dissent note. “The report may be submitted to the RBI in this month only,” said an official aware of the developments, adding that the panel will hold consultations on some recommendations in next few days.

“The panel is yet to take a call on carrying former economic affairs secretary dissent note in the report,” the above quoted official said.


The Bimal Jalan 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.

The finance ministry has contended that the buffer of 28% of gross assets maintained by the central bank is well above the global norm of around 14%.

The RBI had set up the Jalan panel in December following differences over various issues between the government and the central bank that culminated in the departure of former governor Urjit Patel, who was succeeded by Shaktikanta Das. The government has budgeted Rs 90,000 crore in dividends from the RBI in the current financial year against Rs 68,000 crore in the last one.