INSUBCONTINENT EXCLUSIVE:
Jalan as the head of the expert panel that will decide on the appropriate size of reserves that the central bank should maintain and the
dividend it should give to the government
Former economic affairs secretary Rakesh Mohan will be the vice chairman
In a statement, the Reserve Bank of India (RBI) said the expert committee will submit its report in 90 days from the first day of its
meeting and has been asked to study global practices and suggest if the central bank was holding reserves and buffer capital in surplus of
the required.The government and the RBI under the previous governor Urjit Patel had been at loggerheads over the Rs 9.6 lakh crore surplus
capital with the central bank
The Finance Ministry was of the view that the buffer of 28 per cent of gross assets maintained RBI is well above the global norm which is
announced as the two sides reportedly differed on the role of Mohan
committee now been constituted also includes Economic Affairs Secretary Subhash Chandra Garg and two members of RBI central board - Bharat
RBI deputy governor NS Vishwanathan is the sixth member of the committee
It will also "review global best practices followed by the central banks in making assessment and provisions for risks which central bank
an adequate level of risk provisioning that the RBI needs to maintain.Earlier this month, Finance Minister Arun Jaitley said it does not
need money from the RBI to fund fiscal deficit
"My government has the best fiscal record and even this year we will maintain the fiscal deficit
committee recommended that contingency reserve should be built up to 12 per cent, the Thorat committee had said the reserve adequacy should
