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).
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