The Reserve Bank of India on Monday said that it had decided to transfer Rs 1,76,051 crore dividend and surplus reserves to the central government, PTI reported. The decision came after the central bank accepted the recommendation of a panel led by Bimal Jalan, a former governor of RBI.

In its meeting on Monday, the RBI’s central board decided to transfer Rs 1,23,414 crore of surplus for the year 2018-’19 and Rs 52,637 crore of excess provisions identified by a revised economic capital framework, the central bank said in a statement.

The Bimal Jalan panel was set up by the Reserve Bank of India in December 2018 to examine the economic capital framework to decide on matters related to the RBI’s surplus reserves. The panel had been asked to submit a report within 90 days from the date of the first meeting. The panel finalised its report on August 14.

The economic capital framework had reportedly been a cause of disagreement between the government and the RBI last year. The framework governs the terms of transfer of the RBI’s surplus reserves to the government. Urjit Patel, who was then the RBI governor, had quit in December amid reports of a rift before the Jalan panel was formed.

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