The 15th Finance Commission has scheduled a two-days visit to Mumbai to hold meetings with the Reserve Bank of India (RBI) and with the Banks and Financial Institutions on 8th and 9th May, 2019.  The Commission will be headed by its Chairman, Shri N.K. Singh and include all its Members and senior officials.

In the meeting with the RBI, headed by Governor Shri Shaktikanta Das, the Commission is likely to discuss the following issues:-

• Views on key macro-economic assumptions for the Fifteenth Finance Commission (FCXV), keeping in view the key parameters central to macro-financial stability.
• Views on the cost of borrowings of the Centre and the States during the award period of the FCXV.
• Modalities for ensuring that the borrowing cost becomes increasingly market-driven.
• Issues in quantifying contingent liabilities of States and off-budget transactions of States, and other issues of public financial management.
• Views on possible debt trajectories of States and State-specific consolidation road map.
• Requirements of recapitalisation of banks and their impact on the cost of borrowings of governments.
• Possible scenarios of the Bimal Jalan Committee Report on surplus capital available with the RBI for transfer to the Government of India.
• RBI’s own assessment of the dividends and surpluses that can be transferred to the Government of India during the award period of FCXV.

In the meeting with the Banks and Financial Institutions the following issues are likely to be raised:-

• Cost of borrowings of the Centre and the States during the award period of the FCXV.
• Modalities for ensuring that the borrowing cost becomes increasingly market-driven.
• Recapitalization of banks and their impact on the cost of borrowings of governments.

          The meeting is to be attended by State Bank of India, Bank of Baroda, Bank of India, Bank of Maharashtra, Central Bank of India, Union Bank of India, Axis Bank Ltd. HDFC Bank Ltd., ICICI Bank Ltd., IndusInd Bank, Kotak Mahindra Bank, Yes Bank Ltd, IDFC First Bank Ltd., IDBI Bank Limited.

          The Commission will also hold a detailed meeting with eminent economists to discuss the various Terms of Reference of the 15th Finance Commission.  The economists who will be attending the meeting include Ms. Rupa Rege Nitsure, Mr. Saugata Bhattacharya, Ms. Prachi Mishra, Mr. Sajjid Chenoy, Mr. Neelkanth Mishra, Dr. Samiran Chakraborty, Ms. Pranjul Bhandari, Ms. Ashu Suyash, Mr. Naresh Takkar, Mr. Soumya Kanti Ghosh, Mr. Ajit Ranade, Ms. Mala Lalvani, Dr. Mahendra Dev, Dr. Avadhoot Nadkarni, Dr. S.L. Shetty. 

Borrowing cost policy shaped by FCXV consultations with central bank, banks and economists to refine fiscal assumptions and risks. The Fifteenth Finance Commission sought expert inputs on borrowing cost of the Centre and States and modalities to make borrowing increasingly market-driven; macro-economic assumptions for fiscal projections and stability; quantification of contingent liabilities and off-budget transactions; state debt trajectories and consolidation road maps; fiscal implications of bank recapitalisation; and the central bank's assessment of dividends and surplus transfers available to the Government during the award period.