Skip to main content

BIMAL JALAN COMMITTEE

RBI has decided to transfer a sum of ₹1.7 Lakh crore to the Government of India – comprising of ₹1.2 Lakh crore of surplus for the year 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted – to address the fiscal situation of the government to a great extent.

About: 

Reserve Bank of India (RBI) had constituted an “Expert Committee to Review the Extant Economic Capital Framework of the RBI” under the Chairmanship of Dr. Bimal Jalan. Major recommendations of the Committee with regard to risk provisioning and surplus distribution are as follows:

RBI’s economic capital: A clearer distinction between the two components of economic capital (realized equity and revaluation balances) was recommended.

Realized equity could be used for meeting all risks/ losses as they were primarily built up from retained earnings.


Revaluation balances could be reckoned only as risk buffers against market risks as they represented unrealized valuation gains and hence were not distributable.


Risk provisioning for market risk: It has recommended the adoption of Expected Shortfall (ES) methodology under stressed conditions (in place of the extant Stressed-Value at Risk) for measuring the RBI’s market risk. It has recommended the adoption of a target of ES 99.5 % confidence level (CL).


Size of Realized Equity: Contingent Risk Buffer (CRB) – made primarily from retained earnings – has been recommended to be maintained within a range of 6.5 % to 5.5 % of the RBI’s balance sheet, comprising 5.5 to 4.5 % for monetary and financial stability risks and 1.0 % for credit and operational risks.


Surplus Distribution Policy: It has recommended a surplus distribution policy which targets the level of realized equity to be maintained by the RBI. Under it, only if realized equity is above its requirement, will the entire net income be transferable to the Government.


It has also suggested that the RBI’s economic capital framework may be periodically reviewed after every five years.

Labels:

Comments

Post a Comment

"Welcome to my blog, where I, Sandeep Giri, share my passion for the Tech World. Join me on an exciting journey as we explore the latest trends, innovations, and advancements in the world of technology."

Popular Post

■ Can India Become A Technology Leader? India

  ■ Can India Become A Technology Leader?   ✅India is presently not a major player in the field of technology due to certain challenges and on the other side, there are many celebrated Indian technologists around the world as many of the technology giants choose an India- born techie as their leader. ✅The conversation around Indian executives at the helm of top tech companies has gathered some momentum with Parag Agrawal taking over as Twitter CEO. The major technology companies like Google and its parent company Alphabet, Microsoft and Twitter, Adobe and IBM are all headed by Indians. ● The Case of the U.S: ✅The Indian immigrants in the U.S are the part of the most educated and professionally accomplished communities in that country. ✅As of 2019, there were 2.7 million Indian immigrants in the U.S. ✅The government of the U.S has been instrumental in the triumphs of enterprise and the free market. ✅The governmental agencies have been actively supporting the research and develo...
Post a Comment
Read more

India stand with Taiwan..

1. India is set to take over as the next Chairperson of the World Health Organisation’s decision-making executive body 2. India will have to decide on supporting the USA’s move to reinstate Taiwan’s observer status at the World Health Assembly (WHA) that is opposed by China. 3. India’s nominee will take over as the Chairperson, replacing Japan. 4. India is likely to hold the post for the next three years. 5. The seven-nation meeting was attended by the foreign ministers of Australia, Brazil, India, Israel, Japan, and the Republic of Korea. 6. All invitees other than India are major non-NATO allies of the United States, who would be expected to support USA’s move. 7. China has been referring to the “One-China” principle as a widely accepted universal consensus of the international community including the Indian government.
Post a Comment
Read more

ISRO selected For Indira Gandhi Prize For Peace – 2014

Awards and Honours Manmohan Singh Received Japan’s Top National Award Former Indian Prime Minister Manmohan Singh was conferred with the “Grand Cordon of the Order of the Paulownia Flowers” Award on 5 November. The “Grand Cordon of the Order of the Paulownia Flowers” is perceived as the second highest civilian award of Japan after “Order of the Chrysanthemum”. The award was presented to Manmohan Singh by Japanese Emperor Akihito at the Imperial Palace in Tokyo. He was given this award for his “significant contribution to the enhancement of relations and promotion of friendship” between Japan and India. He became the first Indian to receive this prestigious award. West Bengal’s Darjeeling Zoo Selected For Earth Heroes Award 2014 The Darjeeling Zoo or the Padmaja Naidu Himalayan Zoological Park was on 1 November selected for the prestigious International Award The Earth Heroes Award 2014. It has become the first zoo in India. It has competed with 300 zoos across the world. Padmaja...
Post a Comment
Read more

Reset password without entered previous password .....

                  STEPS:- 1) Just open command prompt via administrator. 2) Type command "net user" to view all account of your pc. 3) Type command "net user <username> *" i.e. enter username of which you want to     change the password. 4) After entering command, a message occur "Enter your new password" & "Re-enter    your new password". & then command successful message occur.                               OR if you want to change the password in only one step:-   Type command "net user <username> <password you want to rest>             
Post a Comment
Read more

India Citizenship Amendment Act 2019

Protection of minors 1. There have been several instances of police clashing with and detaining protesters in the Anti-CAA protests. 2. In several cases, those detained were minors under 18 years. Detention of minors 1. Juvenile Justice (Care and Protection of Children) Act, 2015 has specific procedures and rules in relation to children found to be in conflict with the law. 2. As soon as a child alleged to be in conflict with law is apprehended by the police, the child is to be placed under the charge of the special juvenile police unit or the designated child welfare police officer. 3. That officer should produce the child before the Juvenile Justice Board within a period of 24 hours excluding the time necessary for the journey from the place where the child was picked up. 4. In no case should a child alleged to be in conflict with the law be placed in a police lock-up or lodged in a jail. NCPCR 1. National Commission for Protection of Child Rights (NCPCR) is a statutory bod...
Post a Comment
Read more

Follow the Page for Daily Updates!