Monetary Policy Committee (MPC)

Current Context : Recently, central government appointed new monetary policy committee members.

• The new members are Ram Singh, Saugata Bhattacharya and Nagesh Kumar.
• They have been appointed for a period of four years.

ABOUT MONETARY POLICY COMMITTEE (MPC)

• Constitution : The MPC was established under the Reserve Bank of India (RBI) Act, 1934, and officially formed in 2016 to ensure transparency in monetary policy decisions.
• Objective : Its primary function is to maintain price stability (inflation control) while supporting economic growth. It does this by setting the repo rate—the rate at which the RBI lends to commercial banks.
• Composition : The MPC consists of six members:

• Three from the RBI: the Governor (Chairperson), the Deputy Governor (Monetary Policy), and one RBI officer.
• Three members appointed by the Central Government, usually experts in economics or related fields. They serve a term of four years​