India's central bank sets up panel to examine its economic capital framework

[NEW DELHI] The Reserve Bank of India (RBI) has set up an expert panel to review its existing economic capital framework that will be headed by its former governor Bimal Jalan, the central bank said on Wednesday.

This comes after government officials pressured the central bank for weeks to accede to a range of demands, from handing over surplus reserves to the government to easing of lending curbs.

Heated discussions over the revamping of the economic capital framework led to the unexpected resignation of RBI Governor Urijit Patel earlier this month.

The central bank said in a statement that former RBI Deputy Governor Rakesh Mohan would be the Vice Chairman of the committee, which would also comprise Bharat Doshi, Sudhir Mankad, Subhash Chandra Garg and NS Vishwanathan as members.

REUTERS