The Reserve Bank of India (RBI) on December 26, 2018 constituted a six-member committee under the chairmanship former RBI Governor Bimal Jalan (Governor of RBI between November 1997 and September 2003) to review the economic capital framework of the central bank.
- Former Deputy Governor Rakesh Mohan has been appointed its deputy chairman.
- The other members of the panel are Economic Affairs Secretary Subash Chandra Garg, RBI Deputy Governor N.S. Vishwanathan and two board members of the RBI — Bharat Doshi and Sudhir Mankad.
- The committee would submit its report within 90 days from the date of its first meeting.
Objectives
- The committee will review status, need and justification of various provisions, reserves and buffers presently provided for by the RBI, keeping in mind public policy mandate of the RBI, including financial stability considerations.
- The committee will also review best practices followed by the central banks globally in making assessment and provisions for risks, to which central bank balance sheets are subjected.
- It would also suggest an adequate level of risk provisioning that the RBI needs to maintain, and to determine whether it is holding provisions, reserves and buffers in surplus or deficit of the required level.
