The Reserve Bank of India, in consultation with the government, constituted a committee led by the central bank's former Governor Bimal Jalan to look into its Economic Capital Framework.
The committee also comprises former RBI Deputy Governor Rakesh Mohan, central board members Bharat Doshi and Sudhir Mankad, Economic Affairs Secretary Subhash Chandra Garg and RBI Deputy Governor NS Vishwanathan, according to a statement on the RBI's website. It is expected to submit its report within 90 days of its first meeting.
The panel would review the status, need and justification of various provisions, reserves and buffers held by the RBI. It would suggest an adequate level of provisioning that the RBI needs to maintain. It would also determine whether the RBI is holding provisions, reserves and buffers in surplus or deficit of said levels, and would propose a suitable profit distribution policy taking into account all the likely situations.(Source : Bloomberg)