Recommendations of RBI capital framework panel to be finalised by June

The recommendations of Reserve Bank of India (RBI) Economic Capital Framework panel is likely to be finalised by June, head of its expert committee Bimal Jalan said on Wednesday.

The committee will recommend appropriate size of capital reserves which the central bank should maintain and the dividend it should give to the government.

Jalan, a former RBI Governor, held the committee meeting on Wednesday. Another meeting will be held soon, he said.

The RBI had constituted the expert committee on RBI Capital Framework in December 2018.

The committee has been asked to study global practices and suggest if the central bank is holding reserves and buffer capital in surplus.

Its members include Economic Affairs Secretary Subhash Chandra Garg, members of the RBI Central Board, Bharat Doshi and Sudhir Mankad, RBI Deputy Governor N S Vishwanathan and former Deputy Governor Rakesh Mohan.