About Monetary Policy Committee(MPC):

• The MPC is entrusted with the responsibility of deciding the different policy rates including MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility.
• The Reserve Bank of India Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC.

Composition of MPC:

• The committee will have six members. Of the six members, the government will nominate three. No government official will be nominated to the MPC.
• The other three members would be from the RBI with the governor being the ex-officio chairperson. Deputy governor of RBI in charge of the monetary policy will be a member, as also an executive director of the central bank.
• Term: Members of the MPC will be appointed for a period of four years and shall not be eligible for reappointment.