ECF panel to submit RBI reserves report by February end

The expert committee to examine the economic capital framework (ECF) of the Reserve Bank of India (RBI) will be formed within a week two people aware of the discussions said, adding that it will submit its report by the end of February The first person cited above said the committee will examine the optimum level of reserves required to be maintained by the central bank. It will be on the lines of earlier committees like the Subrahmanyam Group (1997), the Usha Thorat Group (2004) and the Malegam Committee (2013). All three committees have suggested different levels of reserves to be maintained by the central bank. According to the person cited above, discussions in the board meeting were cordial and issues like capital requirements of commercial banks were unequivocally agreed upon by RBI and the government. The second person cited above said the RBI governor and the finance minister will decide the composition of the committee, which could also include external experts.

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