With reference to the Monetary Policy Committee (MPC) rate cut, which of the following statements is/are correct?

The Finance Act, 2016 amended the RBI Act, 1934 to establish a statutory framework for the MPC.

The quorum for a meeting shall be four Members, at least one of whom shall be the Governor.

The MPC takes decisions based on a majority vote.

Select the correct option from the codes given below:

Question

The Finance Act, 2016 amended the RBI Act, 1934 to establish a statutory framework for the MPC. Correct: The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016 to provide for a statutory and institutionalized framework for an MPC. Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member MPC.
The quorum for a meeting shall be four Members, at least one of whom shall be the Governor. Correct: The quorum for a meeting shall be four Members, at least one of whom shall be the Governor and, in his absence, the Deputy Governor, who is the Member of the MPC.
The MPC takes decisions based on a majority vote. Correct: The MPC takes decisions based on a majority vote.In case of a tie, the RBI governor will have the second or casting vote.

GKToday Admin · Accepted Answer

All three

The Finance Act, 2016 amended the RBI Act, 1934 to establish a statutory framework for the MPC. Correct: The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016 to provide for a statutory and institutionalized framework for an MPC. Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member MPC.
The quorum for a meeting shall be four Members, at least one of whom shall be the Governor. Correct: The quorum for a meeting shall be four Members, at least one of whom shall be the Governor and, in his absence, the Deputy Governor, who is the Member of the MPC.
The MPC takes decisions based on a majority vote. Correct: The MPC takes decisions based on a majority vote.In case of a tie, the RBI governor will have the second or casting vote.

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