The Reserve Bank of India's panel on economic capital framework (ECF) will submit its report by June 30, a senior government official said on June 12. "The ECF panel will meet one more time to finalise its report and will submit the same by June-end," the official said. He added that there might be a difference of opinion among panel members regarding finalising of recommendations, but the same was being ironed out.
In December last year, the central bank set up a committee on ECF, which was expected to submit its report within 90 days from the date of its first meeting.
Besides former RBI Governor Bimal Jalan and Economic Affairs Secretary Subhash Chandra Garg, former RBI Deputy Governer Rakesh Mohan, Directors of RBI’s central board Bharat Doshi and Sudhir Makand, and RBI Deputy Governor NS Vishwanathan are also part of the panel.
The panel was formed at a time when the government and the central bank were involved in differences of opinion on the issue of RBI’s surplus transfer to the government.
The controversy over the transfer of surplus reserves began after reports emerged that the government was seeking Rs 3.6 lakh crore from RBI. The government at that point in time said it was only discussing a proposal to fix an appropriate ‘economic’ capital framework for the central bank.
It was reported that the government wanted to reset the current framework, if necessary, through recourse to a section never before used in the RBI’s 83-year history to free up Rs 3.6 lakh crore for transfer to the government.
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