Economic Capital Framework

RBI recently approved the transfer of Rs 1.76 lakh crore dividend and surplus reserves to the government which is in line with the recommendation of former RBI governor Bimal Jalan-led panel constituted in 2018 to review the RBI’s Economic Capital Framework (ECF).

  • Economic Capital Framework refers to the risk capital required by the central bank while taking into account different risks. It is required as a counter against unforeseen risks or events or losses in the future.

Important Recommendations of Jalan Committee

  • The RBI should maintain a Contingent Risk Buffer, which mostly comes from the Contingency Fund (CF), of between 5.5-6.5% ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Indian Economy