Monetary Policy Committee (MPC)
Composition and Mandate
The MPC was established by amending the Reserve Bank of India Act, 1934 through the Finance Act, 2016. Governed under Section 45ZB of the RBI Act, it institutionalised India's monetary policy framework by creating a statutory, committee-based decision-making structure to replace the earlier Governor-centric model.
The MPC has six members: three ex-officio RBI representatives (the Governor as Chairperson, a Deputy Governor in charge of monetary policy, and one RBI officer nominated by the Central Board) and three external members appointed by the Central Government based on expertise in economics, banking, or finance. Decisions are by majority vote, with the Governor holding a casting vote in case of a tie.
- Primary mandate: Achieve the inflation target of 4% (with a ±2% tolerance band) under the Flexible Inflation Targeting (FIT) framework
- Meetings held at least four times a year; decisions published after each meeting
- The MPC determines the policy repo rate — the rate at which the RBI lends overnight funds to commercial banks
- Current repo rate (as of April 2026): 5.25%; Neutral policy stance retained
● Tracked since February 06, 2026 · last seen August 19, 2026 · updates as the daily brief publishes
Plus 14 earlier mentions since February 06, 2026.