‘No need for major changes in formula to calculate RBI dividend to govt'
NEW DELHI: Though the time for review of the Bimal Jalan Committee's Economic Capital Framework (ECF), the formula which is used to decide the quantum of Reserve Bank of India's (RBI's) transfer of excess funds to the government, has come up, the government does not see a pressing need to make major changes to the framework.
'The mechanism has worked well so far, and if at all only minor tweaks would be enough for now,' said a government source.
The framework was put in place by the Bimal Jalan Committee in 2019, and had suggested a review of the framework every five year. The RBI Central Board of Directors met last week to review the Framework.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
Rupee rises 12 paise to 85.43 against US dollar in early trade
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The rupee appreciated by 12 paise to 85.43 against the US dollar in early trade on Monday on the back of a weak American currency and favourable macroeconomic data that fuelled hope of a further reduction in key interest rate in the RBI's upcoming monetary a volatile equity market, outflow of foreign funds and higher crude oil prices amid global trade related uncertainties weighed on the Indian currency, according to forex traders Analysts also said that market participants will be closely monitoring key macroeconomic announcements for further Monetary Policy Committee (MPC) will begin the deliberations on its next bi-monthly policy on June 4 and the outcome is scheduled to be announced on June PMI (Purchasing Managers' Index) data for manufacturing and services sectors is also expected to be announced this the interbank foreign exchange, the domestic unit opened at 85.55 and gained further ground to trade at 85.43 against the greenback in initial deals, registering a rise of 12 paise from its previous rupee ended 7 paise lower at 85.55 against the dollar on the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.05 per cent at crude, the global oil benchmark, rose 2.12 per cent to USD 64.11 per barrel in futures the domestic equity market, the 30-share BSE Sensex tumbled 709.10 points, or 0.87 per cent, to 80,741.91, while the Nifty dropped 196.00 points or 0.79 per cent to 24,554.70. Foreign institutional investors (FIIs) sold equities worth Rs 6,449.74 crore on a net basis on Friday, according to exchange to the latest govern data released on Friday, the Indian economy expanded at a faster pace than expected in the last quarter of the 2024-25 fiscal. The GDP growth rate of 7.4 per cent in January-March period of FY25 reflected a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and government also managed to meet its fiscal deficit target of 4.8 per cent of the GDP for 2024-25, according to the provisional data released by the Controller General of Accounts on country's gross GST collection remained above the Rs 2 lakh crore mark for the second month in a row, rising 16.4 per cent in May to over Rs 2.01 lakh crore. Goods and Services Tax (GST) collection had touched a record high of Rs 2.37 lakh crore in Reserve Bank's weekly data released on Friday showed India's forex reserves jumped by USD 6.992 billion to USD 692.721 billion during the week ended May 23. The reserve had dropped by USD 4.888 billion to USD 685.729 billion in the preceding week. PTI
Time of India
24 minutes ago
- Time of India
India bond yields resume decline as all eyes on RBI decision this week
Indian government bond yields edged lower as the market anticipates a rate cut from the Reserve Bank of India. The yield on the benchmark 10-year bond decreased to 6.2132%. This movement follows unexpected growth data that caused fluctuations on Friday. The RBI's policy decision is expected on June 6, with a likely 25-basis-point rate cut.
Economic Times
27 minutes ago
- Economic Times
Rupee rises 12 paise to 85.43 against US dollar in early trade
The rupee saw gains against the US dollar due to positive economic data and expectations surrounding the Reserve Bank of India's monetary policy. Strong GDP growth and GST collections support this. However, volatile stock markets, foreign fund outflows, and rising crude oil prices create headwinds. The RBI's policy decision and PMI data are keenly awaited by the market. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Markets 1. US dollar declines as traders assess tariff outlook Tired of too many ads? Remove Ads The rupee appreciated by 12 paise to 85.43 against the US dollar in early trade on Monday on the back of a weak American currency and favourable macroeconomic data that fuelled hope of a further reduction in key interest rate in the RBI's upcoming monetary a volatile equity market, outflow of foreign funds and higher crude oil prices amid global trade related uncertainties weighed on the Indian currency, according to forex traders Analysts also said that market participants will be closely monitoring key macroeconomic announcements for further Monetary Policy Committee (MPC) will begin the deliberations on its next bi-monthly policy on June 4 and the outcome is scheduled to be announced on June PMI (Purchasing Managers' Index) data for manufacturing and services sectors is also expected to be announced this the interbank foreign exchange, the domestic unit opened at 85.55 and gained further ground to trade at 85.43 against the greenback in initial deals, registering a rise of 12 paise from its previous rupee ended 7 paise lower at 85.55 against the dollar on the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.05 per cent at crude, the global oil benchmark, rose 2.12 per cent to USD 64.11 per barrel in futures the domestic equity market, the 30-share BSE Sensex tumbled 709.10 points, or 0.87 per cent, to 80,741.91, while the Nifty dropped 196.00 points or 0.79 per cent to 24,554.70. Foreign institutional investors (FIIs) sold equities worth Rs 6,449.74 crore on a net basis on Friday, according to exchange to the latest govern data released on Friday, the Indian economy expanded at a faster pace than expected in the last quarter of the 2024-25 fiscal. The GDP growth rate of 7.4 per cent in January-March period of FY25 reflected a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and government also managed to meet its fiscal deficit target of 4.8 per cent of the GDP for 2024-25, according to the provisional data released by the Controller General of Accounts on country's gross GST collection remained above the Rs 2 lakh crore mark for the second month in a row, rising 16.4 per cent in May to over Rs 2.01 lakh crore. Goods and Services Tax (GST) collection had touched a record high of Rs 2.37 lakh crore in Reserve Bank's weekly data released on Friday showed India's forex reserves jumped by USD 6.992 billion to USD 692.721 billion during the week ended May 23. The reserve had dropped by USD 4.888 billion to USD 685.729 billion in the preceding week. PTI
