Former Reserve Bank of India Governor Bimal Jalan will head an expert panel set up by the central bank to examine the economic capital framework to decide on matters related to the RBI’s surplus reserves. The board of directors of the RBI had on November 19 decided the setting up of such a panel. The RBI has named six panel members in consultation with the government.
Rakesh Mohan, a former deputy governor of the RBI and a former economic affairs secretary, will be the vice chairman of the panel. The six-member panel also comprises Bharat Doshi, Sudhir Mankar, Subhash Chandra Garg and NS Vishwanathan. Doshi and Mankad are members of the central board of the RBI, while Vishwanathan is a deputy governor. Garg is the economic affairs secretary in the Ministry of Finance.
The panel has been asked to submit its report within 90 days from the date of its first meeting.
The economic capital framework has reportedly been a cause of disagreement between the government and the RBI lately. The framework governs the terms of transfer of the RBI’s surplus reserves to the government. A news report had earlier claimed that the government had sought Rs 3.6 lakh crore from the central bank’s reserves – though Subhash Chandra Garg had dismissed the claim.