Explanation:

As per the Reserve Bank of India Act; the Central Government shall, in consultation with the Bank, determine the inflation target in terms of the Consumer Price Index, once in every five years. Further, the Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation target.

• The Monetary Policy Committee consists of: the Governor of the Bank—Chairperson, ex officio; Deputy Governor of the Bank, in charge of Monetary Policy—Member, ex officio; one officer of the Bank to be nominated by the Central Board—Member, ex officio; and three persons to be appointed by the Central Government—Members.

No person shall be appointed as a Member, in case such person:

• has completed the age of seventy years on the date of appointment as Member;
• is a Member of any Board or Committee of the Bank or is an employee of the Bank;
• is a public servant as defined under the Indian Penal Code;
• is a Member of Parliament or any State Legislature;
• has been at any time, adjudged as an insolvent;
• has been convicted of an offence which is punishable with an imprisonment for a term of one hundred and eighty days or more;
• is physically or mentally incapable of discharging the duties of a Member of the Monetary Policy Committee; or
• has a material conflict of interest with the Bank and is unable to resolve such conflict.

Hence both statements are correct.