economics medium True/False

The Monetary Policy Committee (MPC) of the RBI, constituted in 2016, consists of 6 members, with the RBI Governor having a casting vote in the event of a tie.

  1. True
  2. False

Answer: True

The MPC was established under the amended RBI Act to bring transparency and collective wisdom to interest rate decisions. It comprises three officials from the RBI (including the Governor as the ex-officio Chairperson) and three external experts nominated by the Government of India. The Governor has a second or casting vote if the committee is evenly split.

Topic Banking - Monetary Policy
Exam Relevance UPSC Prelims, Banking, SSC
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