RBI dividend: Jalan panel recommendations stood test of time, may only need some tweaks

RBI's dividend transfer to the government based on Bimal Jalan committee recommendations has "stood the test of time" and only some tweaking may be required for the coming five years, a government source said on Friday. The source said that at a time when the economy is seeing a steady, consistent growth, some alteration in dividend transfer formula may be required to suggest what should be the set formula for the next five years.

The source said the dividend transfer so far has been calculated based on the Bimal Jalan-panel's ECF recommendations and certainly the time to review the framework has come.

"The Bimal Jalan panel recommendations has stood the test of time, even during Covid... I don't see Jalan panel formulations coming to such an end. Some kind of alterations will happen and RBI is working on it, may be some tweaking (of the panel recommendations)," the source said.