Jalan Committe Report – Economic Current Affairs – Free PDF

JALAN COMMITTEE REPORT

CURRENT AFFAIR

• The report of the Jalan Committee is finalised.

WHAT ?

• To recommend appropriate economic capital framework for RBI.

RECOMMENDATIONS

• Transfer of excess capital from RBI to central government over 3-5 years.
• Framework to be reviewed periodically.

COMMITTEE’S MANDATE

• Set up in December last year.
• Manner in which RBI’s excess surplus can be shared with the Government.
• Review global best practices

 CONTENTIOUS ISSUE

• Issue of transferring past reserves
• RBI’s profits

 STAKE

• Based on assessment of risk of RBI
• Section 47 of RBI Act- profits of RBI are to be transferred to the Government (after making contingency provisions)
• RBI is holding much higher capital

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