New Delhi: Accepting the recommendation of a panel headed by its former governor Bimal Jalan, the Reserve Bank of India on Monday decided to transfer a sum of Rs 1,76,051 crore to the government. “The board of central bank decided to transfer a sum of Rs 1,76,051 crore to the Government of India comprising Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF),” the RBI said in a statement.
The committee had recommended the bank equity to be within a band of 5.5 per cent to 6.5 per cent of the balance sheet. However, the RBI board has decided to maintain it at a lower end of 5.5 per cent band to hand over Rs 52,637 crore excess to the government.
This is an addition to a total surplus transfer of Rs 1,23,414 crore.
The Bimal Jalan panel, which was set up last year to examine the RBI economic capital framework, met on August 14 to decide and recommend the transfer of the central bank’s excess reserves to the government over a period of three-five years.