Daily Current Affairs for UPSC Civil Services Exam – 29 September 2020

Daily Current Affairs for UPSC Civil Services Exam – 29 September 2020

In Today’s News:

  1. RBI postpones the MPC meeting.

1. RBI postpones the MPC meeting

News Summary

The Reserve Bank of India has postponed the MPC meeting as the tenure of three external members of MPC is ending before the policy meeting day. This is the first time postponement is happening since the establishment of MPC in 2016.

Prelims GS – Economic Development

Monetary Policy Committee:
  • The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India, headed by the RBI Governor, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
  • Monetary Policy Committee 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.
  • Quorum: 4 members
  • MPC was set up to task RBI with the responsibility for price stability and inflation targeting.
  • The MPC takes decisions based on the 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.

 

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