The government and the Reserve Bank will likely by this week appoint members of an expert committee which will look into the economic capital framework (ECF) of the central bank, a source said.<\/p>\n
In its nine-hour meeting held last week, the RBI\u2019s board had decided to constitute a committee of experts to examine the ECF, the membership and terms of reference of which will be jointly determined by the government and the RBI. It will determine the appropriate levels of reserves the central bank ought to hold.<\/p>\n
\u201cThe names will be decided by the RBI governor and the Finance Ministry together in next 5 to 6 days,\u201d the source said.<\/p>\n
The committee will have minimum of three people, which will include present and past central bankers, and officials from the Finance Ministry, the person said.<\/p>\n
\u201cWithin two-three months, the committee will submit its recommendations. The idea is to submit the report before the closing of the financial year,\u201d the source added.<\/p>\n
While the Subrahmanyam committee recommended that contingency reserve should be built up to 12 per cent, the Thorat committee had said the reserve adequacy should be maintained at 18 per cent of the total assets. The RBI board did not accept the recommendation of the Thorat committee and decided to continue with the recommendation of the Subrahmanyam panel.<\/p>\n
The Malegam committee recommended that adequate amount of profits should continue to be transferred each year to contingency reserves.<\/p>\n
The issue of transfer of RBI\u2019s reserves to the government has been a contentious issue between the two sides for a long time.<\/p>\n
Recently, RBI Independent Director and Swadeshi ideologue S Gurumurthy had made a case for calibration of RBI\u2019s massive reserves and said no central bank in the world maintains such high levels of surplus.<\/p>\n","protected":false},"excerpt":{"rendered":"
The government and the Reserve Bank will likely by this week appoint members of an expert committee which will look into the economic capital framework (ECF) of the central bank, a source said. In its nine-hour meeting held last week, the RBI\u2019s board had decided to constitute a committee of experts to examine the ECF, […]<\/p>\n","protected":false},"author":1,"featured_media":48274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-48273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/48273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=48273"}],"version-history":[{"count":2,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/48273\/revisions"}],"predecessor-version":[{"id":48277,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/48273\/revisions\/48277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/48274"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=48273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=48273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=48273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}