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The Monetary Policy Committee is entrusted with the task of fixing the benchmark policy rate (repo rate) required to maintain inflation within the specified target level. As per the provisions of the RBI Act, three of the six Members of the Monetary Policy Committee will be from the RBI and the other three Members will be appointed by the ...
The composition of the current monetary policy committee is as follows: [1] Governor of the Reserve Bank of India – Chairperson, ex officio - Sanjay Malhotra; Deputy Governor of the Bank in charge of monetary policy – M Rajeshwar Rao * [7] Executive Director of the Bank in charge of monetary policy – Rajiv Ranjan [8]
Until the Monetary Policy Committee was established in 2016, [5] it also had full control over monetary policy in the country. [6] It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934. [7] The original share capital was divided into shares of 100 each fully paid. [8]
Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements (repos) that is primarily used by the Reserve Bank of India (RBI). [ 1 ] The LAF is used to aid banks in adjusting the day to day mismatches in liquidity .
Monetary policy is the outcome of a complex interaction between monetary institutions, central banker preferences and policy rules, and hence human decision-making plays an important role. [100] It is more and more recognized that the standard rational approach does not provide an optimal foundation for monetary policy actions.
An Act to provide to the responsibility of the Central Government to ensure inter – generational equity in fiscal management and long-term macro-economic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater ...
At the Reserve Bank, he was Member-Secretary of two high level committees chaired by RBI governor Dr. C. Rangarajan: one on Balance of payments and the other on Public Sector disinvestments. Reddy was also a member of the Reserve Bank of India's Policy Group on External Debt Statistics.
The foreign-exchange reserves are managed by the Reserve Bank of India (RBI) for the Indian government, and the main component is foreign currency assets. Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs. [1]