Documente Academic
Documente Profesional
Documente Cultură
Agenda
Terms of
references
Controversy
Officially appointed
committee on 26th Dec’18
Composition of committee
As decided by the Central Board of Reserve Bank of India (RBI) in its meeting held on 19 November 2018, the RBI, in consultation with the Government of India, has
today constituted an Expert Committee to review the extant Economic Capital Framework of the RBI.
Dr. Bimal Jalan Dr. Rakesh Mohan Shri Bharat Doshi Shri Sudhir Mankad Shri Subhash Shri N.S.
(Chairman) (Vice-Chairman) (Member) (Member) Chandra Garg Vishwanathan
(Member) (Member)
Former Governor, Former Deputy Governor, Director, Central Board, Director, Central Board, Secretary, Department of Deputy Governor, Reserve
Reserve Bank of India Reserve Bank of India and Reserve Bank of India Reserve Bank of India Economic Affairs, Bank of India
former Secretary, Ministry of Finance,
Department of Economic Government of India
Affairs,
Ministry of Finance,
Government of India
Terms of reference of the committee
1. Keeping in consideration
(i) Statutory mandate under section 47 of the RBI Act that the profits of the RBI shall be transferred to the Government, after making
provisions ‘which are usually provided by the bankers
(ii) Public policy mandate of the RBI, including financial stability considerations, the Expert Committee would
a.review status, need and justification of various provisions, reserves and buffers presently provided for by the RBI; and
b.review global best practices followed by the central banks in making assessment and provisions for risks which central bank balance
sheets are subject to
2. To suggest an adequate level of risk provisioning that the RBI needs to maintain
3. To determine whether the RBI is holding provisions, reserves and buffers in surplus / deficit of the required level of such provisions,
reserves and buffers
4. To propose a suitable profits distribution policy taking into account all the likely situations of the RBI, including the situations of holding
more provisions than required and the RBI holding less provisions than required
5. Any other related matter including treatment of surplus reserves, created out of realised gains, if determined to be held.
The Expert Committee will submit its report within a period of 90 days from the date of its first meeting
Source: https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=45826
RBI’s assets and reserves
The total assets of RBI is 36,17,594 crore for the financial year of 2017-18. It includes-
Source: https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=45826
In Trillions
Suggested by committee: transfer of funds from RBI in tranches over 3-5 years which is not immediately clear that how much
money the RBI will transfer to the government.
The RBI's annual surplus transfers are key to the government bridging the budget deficit as it aims to lower the fiscal deficit to 3.0
percent of the gross domestic product next fiscal, from the 3.3 percent target this year
June 26 reported that finance secretary Subhash Chandra Garg had expressed dissent in the panel as he wants the money to
transfer in one go and it is quite possible the report may now include a formal dissent note from the secretary.
Government will use these reserves for development of India – infrastructure, social development or might can use for
recapitalization whereas no such quote has been officially disclosed by government for now.
THANK YOU