Nomination Of Rajiv Ranjan As Ex-Officio Member Of Monetary Policy Committee:
The Central Board of Directors of Reserve Bank of India (RBI) has approved nomination of Rajiv Ranjan as ex-officio member of Monetary Policy Committee (MPC).
- The Reserve Bank of India Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC.
- It is tasked with framing monetary policy using tools like the repo rate, reverse repo rate, bank rate, cash reserve ratio (CRR).
- It has been instituted by the Central Government of India under Section 45ZB of the RBI Act that was amended in 1934.
- 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 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.
- The government nominees to the MPC will be selected by a Search-cum-Selection Committee under Cabinet Secretary with RBI Governor and Economic Affairs Secretary and three experts in the field of economics or banking or finance or monetary policy as its members.
- Members of the MPC will be appointed for a period of four years and shall not be eligible for reappointment.