How many members does the Monetary Policy Committee of the Reserve Bank of India have?
- A.Four
- B.Five
- C.Six
- D.Eight
Correct answer
Explanation
The correct answer is C, six. The Committee was created by the amendment of the Reserve Bank of India Act in 2016. Three members come from the Bank, namely the Governor as chairperson, the Deputy Governor in charge of monetary policy and an officer nominated by the Central Board, and three are appointed by the Central Government. Every member has one vote, the Governor has a casting vote when the votes are equal, and the Committee must meet at least four times in a year.
Option A, four, is the minimum number of meetings in a year and also the quorum for a meeting, so it is put here to confuse those two numbers with the strength. Option B, five, and option D, eight, match no provision of the Act. Remember that the decision is a committee decision, not the Governor's alone, which is the reform this amendment brought about.
Read the full article: Functions of the RBI: Monetary Policy and Tools
Practice Questions
View allIn which year was the RBI nationalised?
- A.1971
- B.1956
- C.1949
- D.1935
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The Reserve Bank of India began as a shareholders' bank and was taken into public ownership on 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.
Read the full explanation →The legal provisions governing the management of foreign exchange reserves are laid down in the Reserve Bank of India Act, ______.
- A.1947
- B.1934
- C.1923
- D.1971
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The Reserve Bank of India Act, 1934 is the statute that created the Bank and it carries the provisions on the custody and deployment of the country's foreign exchange reserves, which the Bank holds and invests.
Read the full explanation →Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?
- A.Ministry of Finance
- B.State Bank of India
- C.Comptroller and Auditor General of India
- D.Reserve Bank of India
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Policy rates are announced by the Reserve Bank, and since 2016 the decision is taken by its Monetary Policy Committee of six members under the chairmanship of the Governor.
Read the full explanation →The Reserve Bank of India commenced its operations on
- A.1 April 1935
- B.1 July 1955
- C.1 January 1949
- D.1 April 1934
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The Reserve Bank of India Act was passed in 1934 and the Bank began work on the first day of April in the following year, with its central office at Calcutta.
Read the full explanation →The establishment of the Reserve Bank of India was recommended by which commission?
- A.Hilton Young Commission
- B.Narasimham Committee
- C.Fazl Ali Commission
- D.Sarkaria Commission
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Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 and recommended that the currency and credit functions then divided between the Government and the Imperial Bank be placed in a single central bank.
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