What is Monetary Policy Committee (MPC) ?

Explanation:

  • It is a six members committee  constituted by the Union Government of India.
  • The six member MPC has been entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.
  • It will help in determining the Monetary Policy which in turn adds value and transparency to monetary policy decisions.
  • The meetings of the MPC will be held at least 4 times a year and it will publish its decisions after each such meeting.
  • The RBI Act was amended by the Finance Act, 2016 to provide for a statutory and institutionalised framework for MPC.

Composition of MPC :

  • Urjit Patel: RBI Governor (Chairperson).
  • R Gandhi: Deputy Governor RBI in charge of Monetary Policy (Member).
  • Michael Patra: Executive Director of RBI (Member).
  • Chetan Ghate: Professor, Indian Statistical Institute (ISI) (Member).
  • Professor Pami Dua: Director, Delhi School of Economics (DSE) (Member).       
  • Ravindra H. Dholakia: Professor Indian Institute of Management (IIM), Ahmedabad (Member).