‘Review Capital Framework Every 5 Years'

Jalan panel for aligning RBI’s accounting and financial years to cut need for paying interim dividend

The Bimal Jalan Committee, set up to review the Reserve Bank of India’s (RBI’s) economic capital framework, has suggested that the framework may be periodically reviewed after every five years.

“Nevertheless, if there is a significant change in the RBI’s risks and operating environment, an intermediate review may be considered,” the report, which was made public on Tuesday, said.

The panel recommended to align the central bank’s accounting year with the financial year which could reduce the need for paying interim dividend.

“It could reduce the need for interim dividend being paid by the RBI. The payment of interim dividend may then be restricted to extraordinary circumstances,” the report said.

For 2018-19, the RBI had paid 28,000 crore as interim dividend.