Govt announces 3 new external members ahead of key RBI MPC meet

The government on Tuesday appointed Prof Ram Singh, director of the Delhi School of Economics; economist Saugata Bhattacharya; and the Institute for Studies in Industrial Development’s director and chief executive, Dr Nagesh Kumar, as members of the Monetary Policy Committee (MPC).

The new members will replace Mumbai professor Ashima Goyal, IIM-Ahmedabad professor Jayanth Varma, and New Delhi senior adviser Shashanka Bhide.

The government has notified the reconstitution of the MPC under the Reserve Bank of India Act, 1934. As per the provisions of the RBI Act, the MPC consists of six members: three members from RBI and three appointed by the central government.

 As per the powers conferred by Section 45ZB of the RBI Act, the government has reconstituted the Monetary Policy Committee of RBI.

As per the provisions, the MPC consists of six members, and the government can nominate three members. The other three members are the governor of the Reserve Bank of India — chairperson, ex officio; the deputy governor of the Reserve Bank of India, in charge of monetary policy — member, ex officio; and one officer of the Reserve Bank of India to be nominated by the central board — member, ex officio.