- It was constituted in 2016 as a statutory body to formulate monetary policy in India.
- Legal basis – As per Section 45ZB of the RBI Act, 1934.
- Composition – 6-member body
- Governor of RBI (Chairperson, ex officio)
- Deputy Governor of RBI in charge of Monetary Policy (Member, ex officio).
- 1 officer of RBI nominated by the Central Board of Directors (Member, ex officio).
- 3 members appointed by the Central Government.
- Tenure – The appointed members serve for 4 years or until further orders, whichever is earlier, and are not eligible for re-appointment.
- Meetings – The MPC is required to meet at least 4 times in a year.
- Quorum – 4 members.
- Decision – The decision of the committee would be binding on the RBI.
- Voting – By a majority of members present and voting.
- Tie-breaker – RBI Governor has the casting vote.
- Functions – Determine the policy interest rates required to achieve the inflation target set by the government, while supporting economic growth.
|
