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JALAN COMMITTEE REPORT Why in news? Recently, the Reserve Bank of India (RBI) decided to transfer a surplus of Rs 1.76 lakh crore to the Government of India exchequer. Background • One of the many issues of friction between the government and the central bank is the transfer of higher surplus by the latter to the government. o The RBI transfers the “surplus”, i.e. the excess of income over expenditure, to the government, in accordance with Section 47 (Allocation of Surplus Profits) of the Reserve Bank of India Act, 1934. o Earlier, the RBI used keep a major chunk of this surplus for its contingency and asset development. However, after the Malegam Committee (2013) recommendations its transfer of surplus increased. • Last year, RBI formed a committee under the chairmanship of Bimal Jalan to review the provisions under the Economic Capital Framework. • Recently, based on the recommendations of the committee, the RBI Central Board has decided to increase it