What is Monetary Policy Committee (MPC) ?
- 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
- Michael Patra: Executive Director of RBI (Member).
- Chetan Ghate: Professor, Indian Statistical Institute (ISI)
- Professor Pami Dua: Director, Delhi School of Economics
- Ravindra H. Dholakia: Professor Indian Institute of Management
(IIM), Ahmedabad (Member).