The Bimal Jalan panel will meet again to finalise the report on the transfer of RBI’s surplus and profits to the government in wake of the earlier Finance Ministry nominee and former Finance Secretary Subhash Chandra Garg’s transfer to another Ministry leading to the slot falling vacant.
“Since a new nominee has come, the RBI would decide on exactly what needs to be done and I can’t comment more at this time. The RBI and government will take the call on filling up the gap that has been created due to vacancy from government nominee side,” panel chairman Bimal Jalan told IANS.
“I am not involved in that part,” he added. Asked if the panel will meet again he said: “Most probably.”
As the situation stands now, Finance Secretary Subhash Chandra Garg’s transfer to the Power Ministry might see the panel meeting again.
It, however, could not be ascertained whether the report would stand as was decided in the last meeting, incorporating the new government nominee’s signature, or whether further discussions would take place on the same issues with new entrant from the Finance Ministry.
Atanu Chakraborty has replaced Garg in the Finance Ministry as Economic Affairs Secretary.
The government is yet to announce the name of the new Finance Secretary, while Banking Secretary Rajeev Kumar is the senior-most IAS currently in the Finance Ministry.
The Bimal Jalan Panel, which had concluded discussions and was to submit its report on the RBI’s economic capital framework, now might have to wait on the government decision to place a nominee first following the exit of Garg, who was one of the members of the six-member panel.
Garg was the sole dissenter who opposed the capital framework decided by the committee and refused to sign it, instead of giving a dissent note.
However, the panel had decided to go ahead with the report, adding his dissent note. Garg said later, after taking over the Power Secretary’s post, that he did not sign the report as it was not final.
The RBI Central Board will meet on August 16. The panel had met for the last time on July 18 to decide on the exact amount of transfer to the government by the RBI, and the overall consensus was to transfer it over three to five years and not in one go, which was opposed by Garg.