Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

  1. It decides the RBI’s benchmark interest rates,
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below: 

[UPSC Civil Services Exam – 2017 Prelims]

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only


Answer: (a)        

Explanation:

  • The Monetary Policy Committee (MPC) is responsible for determining the benchmark interest rates of the Reserve Bank of India (RBI). These interest rates, which encompass the Marginal Standing Facility (MSF), Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility, are decided by the MPC. Therefore, Statement 1 is accurate.
  • Contrary to Statement 2, the MPC consists of a total of six members. Among these members, the government nominates three, while the remaining three are chosen from the RBI. Thus, Statement 2 is incorrect.
  • Additionally, the Governor of the RBI serves as the ex-officio Chairperson of the MPC. Hence, Statement 3 is incorrect.
  • The members of the Monetary Policy Committee are appointed for a term of four years and are not eligible for reappointment.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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