Any changes to the current framework will be guided by the need to ensure the central bank’s financial stability, while enabling predictable and adequate support to the government’s fiscal math.
Will the government use this fiscal space to reduce fiscal deficit or will it boost spending by more than what has been budgeted?
The panel is likely to suggest a phased transfer of the RBI's excess funds to the government.
Finance ministry sources said that the issue of new bank licences will be taken up by the RBI board on March 6, according to a CNBC-TV18 exclusive. The Bimal Jalan panel has already submitted its report on the applications of licence seekers.
But there is no reason why Jalan has to be so careful. He could well just say that all these companies are financially sound and now RBI should take the call on whom it should give its licence to.