RBI nod to Jalan panel's ECF proposal led to Rs 1-trillion boost for govt

The decision taken by the Reserve Bank of India (RBI) last year to adopt a new surplus transfer framework, based on the Bimal Jalan committee recommendations, resulted in a windfall of more than Rs 1 trillion for the Union government during FY20.

Documents reviewed by Business Standard showed that the government would have received Rs 73,984 crore from the RBI if the central bank had adopted the previous economic capital framework (ECF). The framework outlines the methodology for determining the level of risk buffers that the RBI has to maintain.

The RBI’s central board, led by governor Shaktikanta Das, had last year