Garg had refused to sign on the report finalised by the former Reserve Bank of India governor Bimal Jalan-led committee reviewing the central bank’s economic capital framework (ECF).
Former finance and economic affairs secretary Subhash Chandra Garg had refused to sign on the report finalised by the former Reserve Bank of India governor Bimal Jalan-led committee reviewing the central bank’s economic capital framework (ECF), sources familiar with the development said.
The panel has now sought the RBI's views on the way forward as Garg leaves the ministry.
“The committee is facing a peculiar situation. Garg didn't agree to the committee's findings and didn't sign the report in its concluding meeting. He told the panel that he will take up the matter separately with the RBI's central board, leading to a stalemate,” said a source.
Garg didn't respond to a text message sent by Business Standard.
All the committee members, including Garg, had last met on July 18 in the RBI's office in New Delhi to finalise the report.
A panel member, requesting anonymity, confirmed that some of the committee members met on Thursday and decided to consult the RBI on the way forward.
There are two possible options before the committee: Submit the report without Garg's signatures or induct the new economic affairs secretary, Atanu Chakraborty, who took charge on Thursday, into the panel and hold further meetings to finalise the report.
However, the committee is running out of time as the RBI's central board meeting is scheduled to be held on August 16, when the regulator will finalise its balance sheet and decide upon the dividend transfers to the central government.