RBI committee to peg excess capital at Rs 3 trillion, says BofAML

BofAML's note comes as the panel led by former governor RBI Bimal Jalan prepares to submit its report in the coming weeks

A panel named by the Reserve Bank of India (RBI) to study its capital structure is likely to identify excess reserves of up to Rs 3 trillion, or 1.5 per cent of gross domestic product (GDP), according to Bank of America Merrill Lynch (BofAML).
 
The view from BofAML lends itself to a debate over the RBI’s reserves, with one school of thought believing that the monetary authority holds surplus capital that can be handed over to the government and the other saying the RBI has insufficient reserves.

BofAML’s note comes as the panel led by former governor RBI