The full implications of the revisions in the RBI’s Economic Capital Framework (ECF) recommended by the Bimal Jalan- chaired committee will be better understood after the release of the FY19 (July-June) RBI annual report. The following is based on the known RBI FY18 results.
The broad contours of the ECF and transfer are as follows. The RBI will be transferring Rs 1.76 trillion to the government, comprising Rs 1.23 trillion of surplus (dividend) earned in FY19 and another Rs 0.53 trillion deemed to be provisions in excess of the norms based on the changes in the revised ECF (the prior norms
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper