Economic capital framework: Govt for Jalan, RBI wants Mohan as panel head

The brass of the finance ministry and the RBI are in touch to decide the members and terms of reference of the committee

The government has suggested former Reserve Bank of India (RBI) governor Bimal Jalan while the RBI has proposed the name of its former deputy governor Rakesh Mohan to chair a panel reviewing the economic capital framework (ECF) of the central bank.

“Both (Jalan and Mohan) have already expressed their views on recent issues. The discussions are ongoing,” a source aware of the development said.

While Mohan has been empathetic towards the view that the RBI’s autonomy needs to be maintained, Jalan has opined that the central bank is accountable to the government. Jalan and Mohan didn't respond to queries from