Ministry of Finance names three members for MPC

The government on Thursday appointed three members to Monetary Policy Committee.

Ministry of Finance in a tweet said these members are Chetan Ghate, Professor, Indian Statistical Institute; Pami Dua, Director, Delhi School of Economics; and Ravindra Dholakia, Professor, Indian Institute of Management, Ahmedabad.

The members of MPC is appointed for a period of four years but will not be eligible for re-appointment. 

ACC approves appointment of Prof. Chetan Ghate, ISI, Prof Pami Dua, Director, DSE & Dr.R.H. Dholakia, Prof, IIM Ahmedabad. as Members of MPC

— Ministry of Finance (@FinMinIndia) September 22, 2016

In June, the government  decided to enforce a law for setting up a broad-based, 6-member committee that is likely to decide on interest rate. The rest of the three members will be from the Reserve Bank of India, including RBI Governor Urijit Patel.

The next monetary policy review will be on October 4 and the new MPC will set the rates by majority and with RBI Governor having a casting vote in case of a tie. 

Till now, the Governor had overriding powers to accept or reject the recommendation of the Reserve Bank of India's panel on monetary policy. 

MPC will have a mandate to bring retail or Consumer Price Index-based inflation to a pre-set target. The meetings of MPC will be held at least four times a year and it will publicize its decisions after each meeting.