Subscribe

0

  • Sign in with Email

By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.

Don’t have an account? Signup

  • Bookmarks
  • My Profile
  • Log Out
  • NEWS
  • POLICIES
  • MSME OPPORTUNITIES
  • BANKING & FINANCE
  • TECHNOLOGY FOR SMES
  • SECTORS
  • GLOBAL
  • Investment
  • LEGAL
  • KNOWLEDGE QUEST
  • Future Ready Forum 2025
  • Ek Nayi Udaan
  • Future Ready Summit 2024
  • ADVERTISE WITH US
ad_close_btn
  • News
  • Policies
  • Banking & Finance
  • MSME Opportunities
  • Web Stories
  • InFocus
  • Technology For SMEs
  • Sectors
  • Global
  • Fashion

Powered by :

You have successfully subscribed the newsletter.
Finance InFocus

Bimal Jalan's Economic Capital Framework Recommendations Are Likely to Get Considered by RBI

Bimal Jalan's Economic Capital Framework Recommendations Are Likely to Get Considered by RBI

author-image
SMEStreet Edit Desk
26 Aug 2019 04:23 IST

Follow Us

New Update
Bimal Jalan, RBI

The RBI Board is meeting to finalise its annual accounts, is also likely to take up the Bimal Jalan panel's recommendations on Economic Capital Framework along with the dividend payment to the government, sources said. The Jalan panel had submitted its report to the RBI Governor.

The report, which recommends transfer of surplus reserves to the government in a staggered manner over three-five years based on a predetermined formula, may be put on the Reserve Bank of India (RBI) website later for public access.

The RBI follows July-June financial year and the dividend is usually distributed in August after annual accounts are finalised. For FY20, the government has pegged a Rs 9,000 crore dividend from the RBI.

Sources had earlier told IANS that the RBI may start transferring the first tranche of the surplus this calendar, based on the Jalan panel report.

With economy facing a slowdown in key sectors, the government is looking at RBI dividends and surplus to step up public investment and tackle funding gaps.

But any decision on capital transfers based on the panel's proposals may not come on Monday as the board members may need more time to study the recommendations.

The board, however, most likely will announce the normal dividend to be paid to the government for FY19 based on the surplus, sources said.

The government has already received Rs 40,000 crore during FY19. In February this year, the RBI had announced a Rs 28,000 crore interim dividend taking the total dividend transfer to the government to Rs 68,000 crore.

The RBI Central Board will have to approve the Rs 28,000 crore interim dividend. So far the extent of capital reserves to be transferred to the government based on the Jalan panel report has been a matter of speculation.

According to BofA Merrill Lynch, the ECF is expected to peg the excess capital of the RBI at Rs 1-Rs 3 lakh crore, where Rs 1 lakh crore is from contingency reserves and Rs 2 lakh crore from revaluation reserves.

"The RBI Act doesn't bar the RBI from transferring excess capital, if any, to the fiscal beyond the RBI's annual surplus," BofA Merrill Lynch said. As per 2017-18 annual report of the RBI, the reserves stand at Rs 9.6 trillion.

Bimal Jalan RBI Economic Capital Framework
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news
logo

Related Articles
Read the Next Article
Latest Stories
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news

Latest Stories
Latest Stories
    Powered by


    Subscribe to our Newsletter!




    Powered by
    Select Language
    English

    Share this article

    If you liked this article share it with your friends.
    they will thank you later

    Facebook
    Twitter
    Whatsapp

    Copied!