MPC members to get Rs. 1.5 lakh per meet, must disclose assets:

MPC members to get Rs. 1.5 lakh per meet, must disclose assets: (MPC members to get Rs 1.5 lakh per meet)

Context: RBI says that govt appointees on the Monetary Policy Committee will be paid Rs 1.5 lakh per meeting along with air travel and other reimbursements.

Introduction:

• The silent period and confidentiality requirements will also apply the three RBI members, including the Governor, on the panel that has been deciding on policy rates since October last year, the central bank has said.
• The six-member MPC, constituted in September 2016, has three persons appointed by the central government while the rest, including the governor, are from the RBI.
• Their appointment is for a period of four years or until further orders, whichever is earlier
• The regulations do not mention whether any separate allowance would be given to the RBI members on the committee.

Monetary Policy Committee (MPC):

• Each member of the MPC has one vote and in case the numbers are equal, the governor has the casting vote.
• The MPC, which has the responsibility of achieving a set of inflation target, should submit a report to the government in case of failure to achieve the required target..
• The panel is required to meet at least four times in a year and the RBI has been convening a bi-monthly meeting of this committee.
• Apart from RBI Governor Urjit Patel, Deputy Governor Viral V Acharya and Executive Director M.D. Patra are also part of the committee.
• The regulatons do not mention whether any separate allowance would be given to the RBI members on the committee.
• Each member of the MPC has one vote and in case the numbers are equal, the governor has the casting vote.
• At least 15 days of notice is required for convening a meeting ordinarily, but an emergency meeting can be called with 24 hours for each member and technology enabled arrangement need to be made for even shorter notice period meetings.

Annual disclosure:

• All members need to disclose their assets and liabilities and update this information once every year.
• Members cannot reveal outside the committees any confidential information.
• After conclusion of meeting, a resolution needs to be made public including on the policy repo rate and other monetary policy measures at the discretion of the chairperson.