Mumbai: The RBI’s Central Board on Thursday reviewed its Economic Capital Framework (ECF) which is the basis for deciding the surplus transfer or amount of dividend to be given to the government.
The dividend payout is expected to be higher this time, the decision about which is likely to be taken at the next meeting of the Central Board of Directors to be held on May 23. “The 615th meeting of the Central Board of Directors of RRBI was held today in Mumbai under the Chairmanship of Sanjay Malhotra, Governor. As part of the agenda, inter alia, the Board reviewed the ECF of the Reserve Bank,” the RBI said in a statement on Thursday.
The transferable surplus is determined on the basis of the ECF adopted by the RBI on August 26, 2019, as per recommendations of the Bimal Jalan-headed Expert Committee to Review the extant Economic Capital Framework of the RBI.
The Committee had recommended that the risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 6.5 to 5.5 per cent of the RBI’s balance sheet.