- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
News: The three new external members of the Reserve Bank of India’s Monetary Policy Committee (MPC) will be taking charge at a time when many believe interest rate curve is at an inflection point.
1. Monetary Policy Committee (MPC) is a statutory body under the RBI Act 1934.
2. It is responsible for fixing the benchmark interest rate in India.
3. The prime objective of MPC is to maintain price stability while keeping in mind the objective of growth.
4. It comprises of 6 members- 3 officials of RBI (Governor of RBI, Deputy Governor in charge of monetary policy, an officer nominated by the central board of the regulator), and 3 external members nominated by GOI.
5. The external members are selected by a 6-member search-cum-selection committee headed by Cabinet Secretary.
6.The governor of RBI is the ex-officio chairperson of the MPC committee.
7. Decisions in MPC are taken by majority vote. In case of tie, the governor exercises a casting vote.
8. Govt of India has mandated MPC to maintain 4% annual inflation until 31 March 2026 with an upper tolerance of 6% and a lower tolerance of 2%.
