With respect to the ldquo Monetary Policy Committee rdquo consider the following statements 1 The RB...........

Economic Affairs Money Supply and Monetary Policy

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With respect to the “Monetary Policy Committee”, consider the following statements:

1. The RBI Governor is the ex-officio Chairperson of the Committee.

2. The members hold office for a period of 4 years and are eligible for re-appointment.

3. The decision of the Committee would be binding on the RBI.

Which of the statements given above are correct?

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

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Explanation:

Explanation:
The Monetary Policy Committee (MPC) was constituted in 2016, as a statutory body under the RBI Act of 1934, in order to formulate monetary policy in India. Composition (6 members): The members include:

The RBI Governor - ex-officio Chairperson.
The RBI Deputy Governor.
One more member from the RBI to be nominated by the Central Board of Directors.
3 other members are to be appointed by the Central Government.

Term: The members of the MPC hold office for a period of 4 years and are not eligible for re-appointment. Meetings: The MPC is required to meet at least 4 times in a year.

Quorum: 4 members.

Decisions: The MPC takes decisions based on majority vote (by those who are present and voting). In case of a tie, the RBI Governor will have the second or casting vote. The decision of the Committee would be binding on the RBI.