The Reserve Bank of India (RBI) is set to meet today to take up the annual accounts. The meeting is also likely to discuss the Bimal Jalan report about the ideal level of reserves that should be maintained by the apex bank.
The board meeting will also decide on the surplus that has to be transferred to the government, along with finalising the central bank’s accounts for the year. The RBI follows a July- June Financial Year.
In August 2018, the RBI board had approved a transfer of Rs 50,000 crore to the government for 2017-18 — up 63 percent from Rs 30,659 crore for 2016-17 (see graphic). The RBI’s surplus had dropped in 2016-17 due to printing costs during demonetisation. The central bank generates a higher surplus when there is volatility in the financial markets and it ends up intervening by selling dollars or lending to banks.
The six-member committee which is headed by former RBI governor Bimal Jalan was formed in December 2018 in order to review the economic capital framework for the apex bank. The reason behind forming this committee was to make sure like banks, RBI also should have a prescription level for capital.