The Bimal Jalan committee report, which is delayed, will lead to transfer of under Rs.3 lakh-crore of excess capital from the Reserve Bank to the government, which will most likely use the money for meeting regular expenses, says a report. The money will come in over three years and is most likely used for regular government spending, Japanese brokerage Nomura said in report Tuesday.

The RBI approved an early transfer of a part of its profit to the government, which needs cash to fund its schemes ahead of the national elections due by May. The RBI's board approved Rs.28,000 crore as interim dividend, according to a statement. This is the second straight year that the RBI has announced an advance payment to Prime Minister Narendra Modi's government.

A high-level panel led by former RBI governor Bimal Jalan held its first meeting to decide on an-appropriate-size of reserves that central-bank should maintain and dividend it should give to government. The six-member panel is likely to submit its report in April, sources said. The government and RBI under previous governor Urjit Patel had been at loggerheads over the Rs.9.6LCr surplus capital with central-bank.