Which of the following statements is correct about the chairperson of Monetary Policy Committee (MPC)?
[A] The chairperson of the committee is appointed by the RBI Governor [B] RBI Governor is the ex officio Chairperson of the committee [C] Finance Minister is the ex-officio chairperson of the committee [D] The Chairperson of the committee is appointed by the Finance Minister
Correct Answer: B [RBI Governor is the ex officio Chairperson of the committee]
The Monetary Policy Committee consists of six Members. Three Members are from the RBI and the other three Members appointed by the Central Government. The Members appointed by the Central Government hold the office for a period of four years. The Governor of RBI is the ex-officio Chairperson of the committee.