NEW DELHI: Though the time for review of the Bimal Jalan Committee’s Economic Capital Framework (ECF), the formula which is used to decide the quantum of Reserve Bank of India’s (RBI’s) transfer of excess funds to the government, has come up, the government does not see a pressing need to make major changes to the framework.
“The mechanism has worked well so far, and if at all only minor tweaks would be enough for now,” said a government source.
The framework was put in place by the Bimal Jalan Committee in 2019, and had suggested a review of the framework every five year. The RBI Central Board of Directors met last week to review the Framework.
The surplus amount to be transferred this month could be announced today or tomorrow. Economists peg the amount to be transferred around Rs 3 lakh crore.
Last year, the RBI had transferred Rs 2.11 lakh crore to the government. The Union Budget has estimated Rs 2.6 lakh crore as dividend from RBI and PSBs in FY26BE (v/s Rs 2.3 lakh crore in FY25).
“We estimate RBI dividend Rs 2.6 lakh crore to Rs 3 lakh crore, depending on the level of provisioning. The higher dividend creates a fiscal space of 0.1% to 0.2% of GDP,” says Gaura Sen Gupta, chief economist, IDFC First Bank.
According to an analysis by IDFC First Bank, RBI’s balance sheet rose by 6.7% Y-o-Y as of March 2025 against 11.4% as of March 2024. The expansion of the balance sheet was led by gold (55.7%, Rupee securities (14.3%) and foreign currency assets (1.3%).