Finance Ministry notified the provisions of the amended Reserve Bank of India Act 1934 to set up Mon...........

Economic Affairs Money Supply and Monetary Policy

Finance Ministry notified the provisions of the amended Reserve Bank of India Act, 1934. to set up Monetary Policy Committee (MPC), Consider the following statements regarding this:

1. It is a six member panel and all members will have one vote.

2. Governor have the veto power in this committee

3. The MPC will decide the benchmark interest rates, which have so far been decided by the RBI governor

Which of the above statements are correct:

1 and 3 only

2 only

2 and 3 only

1 and 2 only

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Explanation:

exp: Governor will not enjoy any veto power in the new monetary policy framework , but will have a second or casting vote in case of a tie amongst the members."All questions which come up before any meeting of the monetary policy committee shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes , the Governor shall have a second or casting vote," states the Union Budget 2016/17.