The reserve Bank of India (RBI) made out big decision in Monday meeting to give RS.1.76 lakh Crore Wealth to Indian government including a bonus of Rs.28 lakh Crore paid in February month. This showers the fiscal situation of government that takes it to the next level.
As per the studied estimates of Economic capital framework, Rs. 1.76 lakh Crore includes a surplus of Rs. 1.23 lakh Crore for the central bank and Rs.52,637 Crore as excess provisions. RBI announced Rs. 1.76 Lakh Crore has been transferred
RBI designed a Jalan committee
The RBI formed a committee chaired by Bimal Jalan, a former governor of RBI to review the entire status of transferring capital and suggest the framework and excess provisions to the government.
This committee was designed on the need of money by the government. RBI has accepted all terms of Jalan Committee. This will talk about monetary, fiscal, and financial stability issues and how to get them on track.
Aim of the committee
The committee states the clear distinction between two components of economic capital for Realized equity and revaluation balances.