Monetary Policy Committee

(GS PAPER- 3 Indian Economy and issues

Source- Livemint)

Context

Recently the monetary policy committee of The Reserve Bank of India has voted unanimously to keep the policy repo rate unchanged at 4%.

Important points

  •  The Marginal Standing Facility rate and the bank rate remained unchanged at 4.25%
  • The  reverse repo rate stands unchanged at 3.35 %
  • The key aspect of this decision the Bedrock of macroeconomic stability that has anchored India’s Revival from the pandemic
  • This will help stakeholders in taking an efficient pending decision over a long  horizon, Thereby improving the investment climate
  •  The committee taking various factors into consideration projected real GDP growth for 2021-22 at 10.5%

Monetary Policy Committee

  •  RBI appointed a committee led by the then Deputy Governor Urjit Patel in 2014 recommended the establishment of the monetary policy committee
  •  The Reserve Bank of India Act 1934 was amended by the finance act 2016 to constitute a monetary policy committee
  • It came into force on the 27th of June 2016
  •  Section 45ZB of the Reserve Bank of India Act 1934, Provides for an empowered six-member monetary policy committee to be constituted by the central government
  • Governor of RBI If the chairperson for ex officio member of the monetary policy committee

– Khyati Khare

Download Daily Current Affairs of 10th April 2021