RBI to appoint ECF members this week

The government and the Reserve Bank of India (RBI) will likely by this week appoint members of an expert committee which will look into the economic capital framework (ECF) of the central bank, a source said.

In its nine-hour meeting held last week, the RBI’s board had decided to constitute a committee of experts to examine the ECF, the membership and terms of reference of which will be jointly determined by the government and the RBI. It will determine the appropriate levels of reserves the central bank ought to hold.

“The names will be decided by the RBI governor and the Finance Ministry together in next 5 to 6 days,” the source said. The committee will have minimum of three people, which will include present and past central bankers, and officials from the Finance Ministry, the person said.