All you need to know about Monetary policy committee of RBI.

After reading this article you need not to read any other article regarding MPC. Monetary policy committee (MPC) is a expert group formed by RBI(Under RBI Act 1934) to determine policy rate to acheive inflation target.
Members- 5+1 
# Governor of RBI - Chairperson
# Deputy governor of RBI -Member
# 1 officer from RBI - Nominated by Central board of Directors
# 3 persons -Appointed by Central  government.

The person appointed by Central government must fulfill some basic requirements-
# Not attain 70 years of age
# Not a member of any board or committee of RBI
# Not a public servant
# Not MP/MLA or any public representative
# Not insolvent 

Person appointed by Central government on recommendation of "Search Cum Selection Committee".

Members- 5+1
# Cabinet Secretary - Chairperson
# Governor of RBI(or his representative not below the rank of Deputy Governor)-Member
# Secretary (Department of Economic affairs) - Member
# 3 Expert of Economics,Finance,Monetary policy - Nominated by Central government.

Now some important things about the person Appointed by Central government in MPC
# Tenure - 4years with No reappointment
# Terms and conditions of service determine by Central government
# Allowances determine by Central board of directors
# Resign to Central government
# Can be removed by Central government if- insolvent, physical/mental unstable, Convicted in any offence.

MPC meeting not to be invalid if these 3 conditions arise-
1. Vacancy in board
2. Defect in appointment
3. Irregularity in Proceedings

MPC meeting- Minimum 4 times/year
Quoram- 4 Member( Atleast 1 Governor or Deputy Governor)
Voting- 1 vote/member & Governor have casting vote.





Comments

Post a Comment

Popular posts from this blog

SOVEREIGN GOLD BOND SCHEME- WHAT, WHEN, HOW

Image
  Sovereign Gold Bonds   are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank of India on behalf of Government of India. The quantity of gold for which the investor pays is protected , since he receives the ongoing market price at the time of redemption/ premature redemption. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc. There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has
Read more

Top 10 Golden Countries

Image
United States Tonnes: 8,133.5 Percent of foreign reserves: 79% With the largest official holdings in the world, the US lays claim to nearly as much gold as the next three countries combined. It also has the highest gold allocation as a percentage of its foreign reserves at 79 percent.   Germany   Tonnes: 3,363.6 Percent of foreign reserves: 75.6% In 2017 Germany completed a four-year repatriation operation to move a total of 674 tonnes of gold from the Banque de France and the Federal Reserve Bank of New York back to its own vaults.   Italy   Tonnes: 2,451.8 Percent of foreign reserves: 71.3% Italy has likewise maintained the size of its reserves over the years, and it has support from European Central Bank (ECB).   France   Tonnes: 2,436.0 Percent of foreign reserves: 65.5% France’s central bank has sold little of its gold over the past several years, and there are calls to halt it altogether.   Russia   Tonnes: 2,299.9 Percent of foreign reserves: 23% Th
Read more

Goodwill and Their Valuation

Image
Goodwill is an intangible asset which is not visible and cannot be touched but can be purchased and traded.Goodwill consist many intangible assets like-Brand name,Customer base, Patents,Trademark,copyright etc.In other words, goodwill is a firm worth or reputation established over time.The valuation of goodwill is based on the assumption obtained by the valuer. A businessman work whole life to make its brand Successful, and this brand gives  business its desirable reputation in the market. This earned reputation evaluate the business, and its financial worth that a customer is eager to give is known as goodwill. This goodwill play a very important role in Mergers and Acquisitions.   Valuation of Goodwill -   Average Profits Method – This method is further divided into two sub-parts.     Simple Average – In this process, goodwill evaluation is done by calculating the average profit by the number of years it is called years purchase. It can be calculated by using the formula.  Goodwil
Read more