- How much money was recommended to the government, this information was not available right now
- RBI has estimated surplus fund of Rs 9 lakh crore
- The committee was formed in December last year under the chairmanship of former RBI governor Bimal Jalan.
Jul 17, 2019, 03:23 PM IST
new Delhi. Bimal Jalan Committee has prepared the final report on RBI's Capital Reserve. The committee's last meeting was held on Wednesday. News Agency has quoted sources saying that within 3-5 years, the transfer of surplus funds to different parts of the government has been recommended. It is not known how much the committee has recommended.
In order to decide how much money the RBI should put in its reserve fund and how much the government should transfer to the government, the Reserve Bank formed a six-member committee on December 26, 2018 under the chairmanship of former Governor Bimal Jalan.
RBI reserves the right to equal 28% of total asset
Due to the controversy over the central bank and government on the issue of cash surplus, former RBI governor Urjit Patel had resigned in December last year. According to various estimates, the RBI has a surplus fund of Rs 9 lakh crore. It is about 28% of the total assets of RBI. The government said that the central banks of other major countries keep 14% of their assets in the reserve fund.
With the surplus funding of the Reserve Bank, the government will be able to control the fiscal deficit. The government has set a target of fiscal deficit equal to 3.3% of GDP in the current financial year.
In addition to surplus capital transfer, in the current financial year, the government is expected to get Rs 90,000 crore as dividend from the RBI. Last year 68 thousand crores were received.
There were 3 committees already set up for funding
In order to fix RBI's reserve fund, there were three committees – V Subramaniam (1997), Usha Thorat (2004) and Y.S. Malegam (2013) Committee Subramaniam Committee recommended 12% and Thorat Committee 18% reserve. The board of RBI did not accept the recommendation of the Thorat Committee. Rather, continued the recommendation of Subramanian Committee. The Malegam Committee did not tell any figure but had said that the RBI should transfer sufficient funds every year.