Following the recommendations of the Bimal Jalan committee, the Reserve Bank of India (RBI) has decided to transfer a surplus of Rs 1.76 lakh crore to the Central government. The decision was taken on Monday at the central board meeting held in Mumbai. Reports say a whopping amount of Rs 1.23 lakh crore will be transferred to the government as surplus for the financial year 2018-19.
At the central board meet, it was decided that Rs 52,637 crore will be given as excess provisions under the Economic Capital Framework (ECF).
The central board meeting was headed by RBI Governor Shaktikanta Das in presence of RBI deputy governors NS Vishwanathan and Mahesh Kumar Jain. Department of Financial Services Secretary Rajiv Kumar and Economic Affairs Department secretary Atanu Chakraborty along with other members of the board were also present at the meeting.
Prasanna Kumar Mohanty, Natarajan Chandrasekaran, Bharat Doshi, Dilip Shanghvi, Sudhir Mankad, Manish Sabharwal, Revathy Iyer, Sachin Chaturvedi, and Swaminathan Gurumurthy also marked their presence.
In a statement, the reserve bank said, the Central Board has accepted recommendations given by the Committee and it is finalized in view to RBI’s accounts for 2018-19 and revised framework. It is decided that a surplus of Rs 1.76 lakh crores will be transferred.
As recommended by the committee members, the Central Board realized to maintain the equity rate at 5.5 %, which is low as compared to the existing 6.8 %. The resultant excess risk provisions of Rs 52,637 crore were written back, RBI said.
The statement added that the RBI top officials also reviewed the current economic situation, global and domestic challenges and how Rupee can become strong as compared to Dollar.