Monetary Policy Committee
Composition and Mandate
The MPC was constituted under the Reserve Bank of India Act, 1934 (as amended in 2016) as a six-member committee tasked with fixing the benchmark policy rate (repo rate) to contain inflation within a specified target range. The committee brings together RBI's technical expertise with independent external perspectives.
- The MPC has six members: three from the RBI (Governor as ex-officio chairperson, Deputy Governor in charge of monetary policy, and one officer nominated by the Central Board) and three external members nominated by the Central Government for four-year terms.
- The current Governor and MPC chairperson is Sanjay Malhotra, who took charge in December 2024.
- The MPC's inflation targeting mandate requires it to maintain CPI inflation at 4% with a tolerance band of +/- 2% (i.e., between 2% and 6%).
- If inflation exceeds 6% or falls below 2% for three consecutive quarters, the RBI must submit a report to the government explaining the reasons and remedial actions.
- Decisions are taken by majority vote, with the Governor having a casting vote in case of a tie.
● Tracked since February 20, 2026 · last seen August 19, 2026 · updates as the daily brief publishes
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