RBI constitutes MPC, Monetary Policy to surface soon

-

Last week RBI’s unprecedented announcement of postponement of Monetary policy committee had left investors and bankers in a state of uncertainty which was also reflected in the market. Finally RBI has corrected its course and has constituted the Rate-setting Monetary policy committee. As the pandemic hit Indian economy is in no shape to communicate doubts among the market forces. The MPC should have met by 29th of last month, however due to lack of minimum required strength of 4 members out of the 6 member panel. Worth noting that the RBI act does not contain any provision for postponement of the meeting and this is the first instance when the meeting got delayed.

Today, the appointments committee of the cabinet(AAC), in a meeting chaired by Prime Minister Narendra modi, announced appointment of three new members, Ashima Goyal, Jayanth R Varma and Shashanka Bhide for next 4 years.

It has been instituted by the Central Government of India underneath Section 45ZB of the RBI Act. MPC is entrusted with the responsibility of deciding the different policy related areas including Marginal Standing Facility, Repo Rate, Bank rate, Reverse Repo, and Liquidity Adjustment Facility. The committee meets bimonthly, none of members are government officials, only economists and RBI members forms the panel.

Support IndianSpectator by subscribing to our Daily Newsletters, Submit your opinion/articles on Info.indianspectator@gmail.com

Support Indian Spectator, follow us on Google News. Submit your opinion and guest articles on Info.indianspectator@gmail.com

Latest News

Damodar Savarkar: A Journey of Controversy and Conviction

You know, Vinayak Damodar Savarkar, a prominent figure in Indian politics, had quite the journey. Born on 28th May...

Congress and AAP arrive at a Lok Sabha seat sharing formula in Delhi.

The Congress and Aam Aadmi Party (AAP) have worked out a deal for who gets to run for Lok...

Yami Gautam’s Role in ‘Best Film of Her Career’ Garners Acclaim: Article 370 movie

Excitement is building among movie fans nationwide for "Article 370," directed by the renowned Aditya Dhar of "Uri –...

Understanding Maratha Reservation: Key Points You Need to Know

On Tuesday, The Maharashtra Assembly approved the Maharashtra State Reservation for Socially and Educationally Backward Classes Bill 2024, which...

Former CM & Shiv Sena Leader Manohar Joshi Passes Away

Political leaders from across party lines, including Prime Minister Narendra Modi, paid heartfelt tributes to former Lok Sabha speaker...

Understanding the World of Fintech in India

In a recent report shared with Parliament, the Standing Committee on Communications and Information Technology raised worries about how...

CBI Raids Premises of Former J&K Governor Satya Pal Malik in Kiru Hydropower Corruption Probe

In a significant development, the Central Bureau of Investigation (CBI) conducted raids on the properties of former Jammu and...

Understanding the Thanthai Periyar Sanctuary Issue: What’s Happening and Why It Matters

Lately, there's been a lot of talk about the Thanthai Periyar Sanctuary in Tamil Nadu. But why all the...