RBI seeks govt nod for bigger contingent risk buffer band after ECF review

Board to meet on May 23 to decide transferable surplus based on new range

The Reserve Bank of India’s (RBI’s) central board, which met las week and reviewed the economic capital framework (ECF), has sought the government’s approval to expand the range of the contingent risk buffer (CRB), multiple sources aware of the development told Business Standard.

  The buffer is at 5.5-6.5 per cent of the RBI’s balance sheet, which is in accordance with the recommendations of the Bimal Jalan committee. The surplus, which the RBI transfers to the government, depends on how much risk buffer it wants to

maintain. A higher risk buffer would mean a lower amount of transferable surplus and vice