The Government is likely to finalise the names of three members to the Monetary Policy Committee within a month and the MPC is likely to decide on interest rate at the next review, a top official said on Wednesday.
“I would expect within a month and so, it (final decision on MPC members) will happen. Next monetary policy should to be decided by MPC,” said the Finance Ministry official. The next bi-monthly RBI policy, scheduled on October 4.
“A search-cum-selection committee headed by the Cabinet Secretary with RBI Governor and Economic Affairs Secretary has met already. It is again meeting very shortly. The committee has discussed various names, it (names) will go to the Appointments Committee of the Cabinet (ACC),” he added.
MPC was set up by amending the Reserve Bank of India Act, 1934, through the Finance Bill 2016. Under this new system, the RBI Governor is ex-officio Chairperson. Besides, RBI Deputy Governor in-charge of the monetary policy and an office bearer of the Central bank are the other two members in the committee.