Reconstitution of Monetary Policy Committee (MPC) and Key Aspects of RBI Act, 1934
| Key Points | Details |
|---|---|
| Why in News | The government reconstituted the MPC ahead of RBI's monetary policy review. |
| MPC Reconstitution | New external members: Ram Singh, Saugata Bhattacharya, and Nagesh Kumar. |
| MPC's Role | Sets benchmark interest rates, manages CPI inflation (target range 2-6%). |
| RBI Act, 1934 | Established RBI; started operations on April 1, 1935. |
| Key Appointments | - Ram Singh: PhD, postdoc from Harvard. - Saugata Bhattacharya: Former Chief Economist, Axis Bank. - Nagesh Kumar: PhD, experience in international organizations. |
| RBI Objectives (RBI Act, 1934) | Regulate banknotes, manage currency/credit system, maintain monetary stability. |
| Key Functions of RBI | Issue banknotes, handle torn/disfigured notes, manage legal tender status. |
| Scheduled Banks Definition | Banks with minimum capital of ₹5 lakhs, including commercial/cooperative banks. |