Former RBI Governor Bimal Jalan has finalised its report on RBI capital and has approved the surplus transfer to the government within next three to five years, as per media reports. The decision was taken in a meeting chaired by Bimal Jalan.
The quantum of surplus which is to be transferred to the government has not been ascertained.
The panel was tasked to review the size of capital reserve surplus the central bank should hold, but there was no consensus, the media reports added.
The surplus capital transfer would help the government meet its fiscal deficit target as it will come as a windfall to the exchequer.
The Bimal Jalan-led six-member panel was constituted to review the Economic Capital Framework for the Reserve Bank of India (RBI) on December 26, 2018.
Source: Media reports