Bimal Jalan is head of RBI committee to review existing Economic Capital Framework

The Reserve Bank of India (RBI) has constituted an expert committee, headed by its former governor Dr. Bimal Jalan, to review the existing Economic Capital Framework (ECF). The purpose of the committee is to suggest how the central bank should handle its reserves and whether it can transfer its surplus to the Government of India (GoI). The six-member panel has former deputy RBI governor Rakesh Mohan as its vice chairman and comprises economic affairs secretary Subhash Chandra Garg, RBI central board members Bharat Doshi and Sudhir Mankad and deputy governor NS Vishwanathan. It will review the need and justification of various provisions, reserves and buffers that RBI has maintained for contingency purposes and suggest an adequate level of risk provisioning. It will submit its report within 90 days of its first meeting.