The key issue for the proposed committee to be constituted to look into RBI’s economic capital framework would be to address whether RBI’s perceived ‘rating’ be higher than India’s credit rating, The Economic Times reported.

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Till date, there has been no rating for the central bank. However, RBI’s balance sheet is likely to be considered in India’s sovereign rating, the report said citing a person familiar with the discussion. As of date, India’s sovereign rating is at the lowest investment grade, according to S&P.

The central bank, according to the report, said that since India has no reserve currency and is required to fund its current account deficit, the RBI balance sheet is robust enough to attract the top rating.

In the November 19 meeting between the government and the central bank, the RBI officials pointed that the monetary authority should have a top rating, while the government nominees in the board asked if it was necessary and raised the question whether the central bank should even have a rating that is above the centre's, said the report.

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