MUMBAI: The central board of the Reserve Bank of India (RBI) will meet in Mumbai on Monday to take up the annual accounts. With the Bimal Jalan report on an ideal level of reserves to be maintained by the RBI having been submitted, the meeting is also likely to discuss the same.The August board meeting, which finalises the central bank’s accounts for the year, also decides on the surplus to be transferred to the government . Unlike other institutions, the central bank follows a July to June financial year. This is because the RBI factors in financial results of other organisations before drawing up its balance sheet.In August 2018, the RBI board had approved a transfer of Rs 50,000 crore to the government for 2017-18 — up 63% from Rs 30,659 crore for 2016-17 (see graphic). The RBI’s surplus had dropped in 2016-17 due to printing costs during demonetisation. The central bank generates a higher surplus when there is volatility in the financial markets and it ends up intervening by selling dollars or lending to banks.The six-member committee headed by former RBI governor Bimal Jalan was constituted in December 2018 to review the economic capital framework for the central bank. The idea behind the committee was that, like in the case of banks that have to maintain a prescribed level of capital in relation to their assets, the RBI too should have a prescription for capital.If the panel prescribes a lower level of reserves than what the RBI currently maintains, it would result in transfer of surplus capital to the government. The panel was expected to submit its report before April 2019, but it was delayed because of differences between members.According to reports, most members were in favour of the surplus being transferred in a phased manner. One member was, however, adamant on an upfront transfer.