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.





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