With reference to the Monetary Policy Committee consider the following statements Union Finance Mini...........

Indian Economic System(BPSC) Money and banking

With reference to the Monetary Policy Committee, consider the following statements

Union Finance Minister is the Chairperson.
Decisions of the MPC are taken on the basis of majority, with Governor having the casting vote in case of a tie.

Select the correct statement.

1 only

2 only

Both

None

The Reserve Bank of India’s Monetary Policy Committee (MPC) recently raised the policy repo rate by 50 basis points (bps) to 5.9%.

It raised the repo rate (or the rate at which it lends money to the banking system) by 50 basis points (or 0.5 percentage points).
It has cut India’s GDP growth rate for the current financial year (2022-23) from 7.2% to 7%.
The MPC retained the retail inflation projection for the current fiscal year at 6.7%.

Monetary Policy Committee

The Monetary Policy Committee of India is responsible for fixing the policy interest rate, to achieve the objectives of monetary policy.

Composition

Three officials of the Reserve Bank of India, with Governor of RBI as Chairperson, ex officio
Three external members appointed by the Government of India
The external members hold office for a period of four years.
Decisions of the MPC are taken on the basis of majority, with Governor having the casting vote in case of a tie.
The MPC meets least 4 times a year and it publishes its decisions after each such meeting.

Hence only statement 2nd is correct.