RBI SUPPORT… RBI to transfer Rs 1,76,051crore to cash-trapped central government

MUMBAI:  Reserve Bank of India will transfer a sum of 1,76,051crore to the Union Government — comprising 1,23,414crore of surplus for year 2018-19 and 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF), which was adopted at a meeting of the Central Board of RBI on Monday.
An experts’ panel headed by Bimal Jalan, set up by RBI some time ago, made the recommendation. The committee noted that the RBI is the primary bulwark for monetary, financial and external stability. Hence, “the resilience of the RBI needs to be commensurate with its public policy objectives and must be maintained above the level of peer central banks as would be expected of a central bank of one of the fastest growing large economies of the world.”
The Bimal Jalan panel was tasked with the job of studying various matters and proposing the quantum of reserves RBI should maintain and the extent of dividends it should pay to the government. The panel submitted its recocmmendations to RBI on Friday last. =IHN-NN
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