Explanation:

Monetary Policy Committee it would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.

As per the provisions of the RBI Act,   The Governor of the RBI is the ex-officio Chairperson of the 6 member committee.

And out of the six Members of Monetary Policy Committee, three Members will be from the RBI and the other three Members of MPC will be appointed by the Central Government.

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee. It decides the repo rates, CRR, SLR etc. It replaced the earlier system of policy rate veto by the RBI governor.