banking services chronicle daily gk

Banking services chronicle releases the magazine every month for the candidates who are preparing for bank examinations. One of the articles which are published in banking serviceschronicle magazine is here which says BIMAL JALAN COMMITTEE in page number 14 of November 2019.

The report of the bimal jalan committee, set up to review the RBI’s extant economic capital framework, submitted its report recently. The reserve bank of india’s balance sheet should be strong enough to support banks if there is a need to recapitalize them during a financial crisis, said the report. India, with one of the lowest sovereign ratings, and not having a reserve currency to boot, should not think that risky actions by the govt would be as safe as advanced economics.

As a stark warning to the govt, which now seems to be depending upon the rbi transfers to bridge the fiscal deficit, the committee said the centre’s manoeuvrability on recapitalization of commercial banks or of the rbi could be constrained during a financial stability crisis.