RBI's surplus tranfer to Centre to be discussed

The 15th Finance Commission will meet the RBI Governor, banks and financial institutions in a two-day meet in Mumbai, from Wednesday to discuss the transfer of central bank's surplus capital to the government, among other issues.

The Commission, with N.K. Singh at the helm, will discuss the possible scenarios of the Bimal Jalan Committee Report on surplus capital available with the Reserve Bank of India (RBI) for transfer to the government, the official statement said.

Besides, the RBI's own assessment of the dividends and surpluses that can be transferred to the government during the award period of the Fifteenth Finance Commission (FCXV) will also be discussed.

Requirements of recapitalisation of banks and their impact on the cost of borrowings of governments, cost of borrowings of the Centre and the states during the award period of the FCXV will also be discussed.

Another topic will be the key macro-economic assumptions for the FCXV, keeping in view the key parameters central to macro-financial stability, and cost of borrowings of the Centre and the states during the award period of the FCXV.

Issues in quantifying contingent liabilities of states and off-budget transactions of states and other issues of public financial management and requirements of recapitalisation of banks and their impact on the cost of borrowings of governments will also be taken up.

--IANS

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