Jalan committee report likely to be delayed

Finance secretary Subhash Chandra Garg’s transfer to the Power Ministry may see the panel consult RBI again.

Published: 27th July 2019 09:51 AM  |   Last Updated: 27th July 2019 09:51 AM   |  A+A-


The Reserve Bank of India. (File Photo | PTI)

Express News Service

NEW DELHI:  The Bimal Jalan Panel, which was supposed to submit its report on the RBI's economic capital framework, is likely to delay its recommendations following the exit of finance secretary Subhash Chandra Garg, who was one of the members of the six-member panel.

According to sources, Garg was the sole dissenter strongly opposed the capital framework decided by the committee and had refused to sign it, instead of giving a dissent note. The panel had decided to go ahead with the report, adding his dissent note. Now that he has left, however, the panel is in a fix whether to go ahead and has decided to consult RBI before turning in the final report. 

“The report is finalised, but the only catch is whether to add his dissent note and whether the new DEA secretary can sign the note as Garg had left without signing the report. We will be taking the view of RBI panel and will meet one more time ahead of signing the report,” said a member who refused to be named.

On July 18, when the committee met for the last time to decide on the exact amount to be transferred by the RBI, the general consensus was to transfer the surplus over the next 3-5 years and not in one go, but Garg had strongly objected to this. 

The reason was that the Receipts Budget had allocated Rs 23,130 crore more towards the “dividend or surplus of the RBI, nationalised banks and financial institutions” to `1.06 lakh crore in 2019-20, compared to the Interim Budget. Many panel members had also privately complained about Garg’s tone, which they found too harsh for their comfort.

Interestingly, it was on Garg’s insistence that the RBI formed the six-member Jalan committee in December. Meanwhile, when Garg was asked about his reasons for not signing the report, he said, “I have been saying this; the committee is still deliberating it. So, now those deliberations will be taken forward by a new representative of the department.” Sources say the report has to be submitted ahead of RBI’s central board meeting on August 16. 

Stay up to date on all the latest Business news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp