The central board of the Reserve Bank of India will Aug. 26 consider the report of the Bimal Jalan panel on how much reserves the central bank should hold, according to an official aware of the development.
The RBI board is scheduled to meet on Monday to approve its financials for 12 months ended June.
The panel is said to have suggested transferring the RBI's excess reserves to the government over a period of three to five years, according to another official. The amount could not be confirmed. Both the officials quoted earlier spoke on the condition of anonymity as the report is not public yet.
The initial report finalised by the panel, before disagreements surfaced between committee members, suggested that the “transferable surplus” was just Rs 8,000-8,500 crore, BloombergQuint had earlier reported.
The committee—also comprising Rakesh Mohan, Finance Secretary Rajiv Kumar, RBI Deputy Governor N S Vishwanathan, and two RBI central board members Bharat Doshi and Sudhir Mankad—is also said to have suggested a periodic review of the economic capital framework.
It is unclear whether the RBI would be able to adopt the new economic capital framework formula suggested by the Jalan panel while deciding its dividend for the year ended June 30. This is because the books of account of the central bank for the period have already been closed.
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