Bimal Jalan panel finalises report of RBI reserves

The panel led by former Reserve Bank of India governor Bimal Jalan led on excess cash reserves of the central bank has finalised its report and will soon submit it to the RBI governor.

'The panel is sticking to its previous recommendation and there have been no changes on that, a source said, adding, "I am not in the condition to give a particular figure, but the transfer will happen in a phased manner which will last for three to five years." This was probably the last time that the panel has met.

The committee on Economic Capital Framework was set up by RBI in December 2018 and was expected to submit its report within 90 days. Bimal Jalan, former RBI deputy governor Rakesh Mohan, directors of RBI's central Board Bharat Doshi and Sudhir Makand, and RBI deputy governor N S Vishwanathan are part of the panel. Since S C Garg was transferred to Ministry of Power recently, department of financial services secretary Rajiv Kumar was part of this meeting.

The government and RBI were in constant conflict over the Rs 9 lakh crore surplus capital with the central bank when Urjit Patel was its governor. The recent update on the matter is good for the government, which is combating an economic slowdown.