Govt, RBI on same page on monetary policy committee structure: Rajan

The government has proposed to set up MPC, which will consist of representatives from the finance ministry and RBI, to decide on interest rate.

hidden November 05, 2015 16:33:22 IST
Govt, RBI on same page on monetary policy committee structure: Rajan

New Delhi: RBI Governor Raghuram Rajan today said the government and the central bank have agreed on composition of the interest rate-setting monetary policy committee (MPC).

Govt RBI on same page on monetary policy committee structure Rajan

RBI Governor Raghuram Rajan. Reuters

"MPC agreement has been largely done. Only fine-tuning is left. The government and RBI are broadly on the same page on composition of MPC," Rajan told reporters here.

The government has proposed to set up MPC, which will consist of representatives from the Finance Ministry and RBI, to decide on interest rate.

Rajan said the final call on the timing of implementing MPC will be taken by the finance ministry.

The revised draft of the Indian Financial Code (IFC), released by the ministry in July, had suggested doing away with RBI Governor's veto power and proposed a 7-member MPC to take rate decisions by a majority vote.

Of the seven members, four are proposed to be government nominees and the rest from RBI.

Under the current set-up, the government appoints RBI Governor, who controls the monetary policy and has veto power over the existing advisory committee of RBI members and outside appointees that sets rates.

PTI

Updated Date:

also read

Several states showing warning signs of stress; need to take corrective actions, says RBI article
Business

Several states showing warning signs of stress; need to take corrective actions, says RBI article

The article was prepared by a team of economist under the guidance of deputy governor Michael Debabrata Patra

RBI Recruitment 2022: Grade B phase 1 scorecard released at opportunities.rbi.org.in, direct link here
India

RBI Recruitment 2022: Grade B phase 1 scorecard released at opportunities.rbi.org.in, direct link here

Through this recruitment drive, RBI will fill up a total of 294 vacancies. Out of which, 238 officers post will be in Grade ‘B’(DR)- General, 31 officers vacancies in Grade ‘B’(DR)- DEPR and 25 officers openings in Grade ‘B’(DR)- DSIM.

RBI Grade B Phase 2 call letter released, here is how to download
Education

RBI Grade B Phase 2 call letter released, here is how to download

The RBI Grade B recruitment is being conducted to fill in a total of 294 vacancies including 238 Officers in Grade ‘B’(DR)- General, 25 Officers in Grade ‘B’(DR)- DSIM and 31 Officers in Grade ‘B’(DR)- DEPR