Union Government Notifies Constitution of Monetary Policy Committee- Important [ Current News (Concise) - ]

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The union government has notified the constitution of Monetary Policy committee (MPC). With this the RBI (Reserve Bank of India) Act, 1934 stands amended by the Finance act, 2016. With this,The purpose of new MPC is to provide institutional framework for maintaining Price stability.

  • Out of six members of MPC, three Members will be from RBI and others members will be appointed by central executive. .

Composition of MPC

MPC of RBI will have following composition

Image of Composition of MPC

Image of Composition of MPC

Image of Composition of MPC

About Monetary Policy Committee (MPC)

  • The Monetary Policy committee includes six members.
  • Entrusted with the task of fixing the benchmark policy rate (Repo rate).
  • Key objective is to contain inflation within the specified target level.
  • Monetary Policy Committee members appointed by the Central Government hold office for a four years with immediate effect or until further orders
  • MPC meeting will be held at least 4 times in a year. After each meeting, it will publish its minutes.

Composition of MPC

3 members are appointed by Central Government (also shows current officers)

Central Government as members

Central Government as members

Central Government as members

- Published/Last Modified on: October 3, 2016