Monetary Policy Committee (MPC) and Repo Rate
The Monetary Policy Committee is a six-member statutory body constituted under the RBI Act, 1934 (amended 2016). It sets the policy repo rate — the rate at which the RBI lends to commercial banks — as its primary instrument to anchor inflation within the 2–6% band.
- MPC composition: 3 RBI members (Governor as Chair, Deputy Governor, RBI-nominated member) + 3 external members appointed by the Central Government.
- Policy repo rate in April 2026: 5.25% (unchanged at April MPC meeting).
- MPC meets six times per year (bi-monthly); decisions are by majority vote; Governor has casting vote in case of tie.
- Instruments: Repo rate, Reverse Repo rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Open Market Operations (OMO).
- MPC is accountable to Parliament if inflation breaches the target band for three consecutive quarters.
● Tracked since March 13, 2026 · last seen June 06, 2026 · updates as the daily brief publishes
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