The Centre and Reserve Bank of India on Wednesday constituted a joint committee headed by former RBI Governor Bimal Jalan to decided on the central bank's economic capital framework.

The committee will give its report within 90 days from its first meeting.

The committee will review status, need and justification of various provisions, reserves and buffers presently provided for by the RBI taking into account global best practices followed by the central banks.

It will propose a suitable profits distribution policy taking into account all the likely situations of the RBI, including the situations of holding more provisions than required and the RBI holding less provisions than required. 

It will suggest an adequate level of risk provisioning that the RBI needs to maintain. 

Besides Jalan, the panel will have former deputy governor of RBI Rakesh Mohan as itsVice Chairman), members of Central Board of RBI Bharat Doshi, Sudhir Mankad, Economic Affairs Secretary Subhash Chandra Garg, and RBI deputy Governor N.S. Vishwanathan as members.