Monetary Policy Committee

10 Apr Monetary Policy Committee

Posted at 10 Apr 2021 in Current Affairs by 0 Comments

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(GS PAPER- 3 Indian Economy and issues

Source- Livemint)

Context

Recently the monetary policy committee of The Reserve Bank of India has voted unanimously to keep the policy repo rate unchanged at 4%.

Important points

The Marginal Standing Facility rate and the bank rate remained unchanged at 4.25%
The reverse repo rate stands unchanged at 3.35 %
The key aspect of this decision the Bedrock of macroeconomic stability that has anchored India’s Revival from the pandemic
This will help stakeholders in taking an efficient pending decision over a long horizon, Thereby improving the investment climate
The committee taking various factors into consideration projected real GDP growth for 2021-22 at 10.5%

Monetary Policy Committee

RBI appointed a committee led by the then Deputy Governor Urjit Patel in 2014 recommended the establishment of the monetary policy committee
The Reserve Bank of India Act 1934 was amended by the finance act 2016 to constitute a monetary policy committee
It came into force on the 27th of June 2016
Section 45ZB of the Reserve Bank of India Act 1934, Provides for an empowered six-member monetary policy committee to be constituted by the central government
Governor of RBI If the chairperson for ex officio member of the monetary policy committee

– Khyati Khare