Former RBI governor Bimal Jalan to head expert panel on Economic Capital Framework

Moneycontrol News
More than a month after its board decided to constitute an expert panel to decide on an appropriate size of Reserve Bank of India's reserves, the central bank on December 26 constituted a six-member committee headed by ex-Governor Bimal Jalan.

Former secretary Rakesh Mohan has been named the vice chairman. The panel will include Economic Affairs Secretary Subhash Chandra Garg and RBI Deputy Governor NS Vishwanathan, the RBI said in a statement.

Bharat Doshi and Sudhir Mankad who are members of the central board of the RBI will be other two members on the panel.

The panel will review the practices of central banks in making assessment & provisions for risks, the status and need of provisions, reserves & buffers provided for by the RBI, and treatment of surplus reserves created out of realised gains, among other things.

It will propose the profit distribution policy taking into account likely situations of RBI, suggest an adequate level of risk provisioning that RBI needs to maintain and see if RBI is holding provisions, reserves and buffers in surplus/deficit of required level.

The panel will submit a report within 90 days of its first meeting.

With PTI inputs