Monetary Policy Committee Notifications

Centre notifies amended RBI Act for MPC

  1. News: Centre has brought the Monetary Policy Committee (MPC)  closer to reality by notifying changes made to the Reserve Bank of India (RBI) Act
  2. The rules governing the procedure for selection of members of MPC and factors constituting failure to meet inflation target have also been notified
  3. MPC: Tasked with bringing value and transparency to monetary policy decisions
  4. Frequency: MPC to meet 4 times a year and make public its decisions following each meeting
  5. Members: Total 6 members, including 3 members from RBI- the Governor (ex-officio chairperson), a Deputy Governor and an officer of the RBI
  6. The other 3 non-RBI members will be appointed on the recommendations of a search-cum-selection committee headed by the Cabinet Secretary
  7. The non-RBI members will be experts in economics, banking, finance or monetary policy
  8. They will be appointed for 4 years & will be ineligible for re-appointment

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