GK- Monetary Policy Committee

Monetary Policy Committee

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016,  to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth.

The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.

The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting.

As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be from the RBI and the other three Members of MPC will be appointed by the Central Government.

The Monetary Policy Committee of RBI has the following composition, namely:-

• Urjit Patel, The Governor of the Bank—Chairperson, ex officio;
• Deputy Governor of the Bank, in charge of Monetary Policy—Member, ex officio;
• One officer of the Bank to be nominated by the Central Board—Member, ex officio;
• Shri Chetan Ghate, Professor, Indian Statistical Institute (ISI) —Member
• Professor Pami Dua, Director, Delhi School of Economics (DSE) — Member        
• Dr. Ravindra H. Dholakia, Professor, Indian Institute of Management (IIM), Ahmedabad—  Member

The Members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years.