The Reserve Bank of India (RBI) on Wednesday set up an expert committee, headed by its former governor Bimal Jalan that will recommend the appropriate size of reserves the central bank should maintain and the dividend it should give to the government. The committee, which has been formed to review the existing economic capital framework (ECF), will have former RBI deputy governor Rakesh Mohan as its vice chairman. Other members are RBI central board directors Bharat Doshi and Sudhir Mankad; deputy governor N.S. Vishwanathan; and economic affairs secretary Subhash Chandra Garg. The panel will submit its report within 90 days of its first meeting. The government has been insisting that the central bank hand over its surplus reserves amid a shortfall in revenue collections. The Jalan panel will decide whether RBI is holding provisions, reserves and buffers in surplus of the required levels.
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