Why in the News?

Central Government appointed 3 New External Members in RBI Rate Setting Panel of RBI Monetary Policy Committee of RBI. Ram Singh, Saugata Bhattacharya and Nagesh Kumar are new external members of MPC. They are appointed for a period of 4years.

About MPC

• Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member MPC
• MPC will have six members - the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board, and the remaining three members would represent the Government of India.
• The external members hold office for a period of four years.
• The MPC takes decisions based on a majority vote. In case of a tie, the RBI governor will have the second or casting vote.
• The decision of the MPC would be binding on the RBI.

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