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Section 45ZB: Constitution of Monetary Policy Committee
1[45ZB. Constitution of Monetary Policy Committee.–(1) The Central Government may, by notification in the Official Gazette, constitute a Committee to be called the Monetary Policy Committee of the Bank.
- (2) The Monetary Policy Committee shall consist of the following Members, namely:–
- (a) the Governor of the Bank–Chairperson, ex officio;
- (b) Deputy Governor of the Bank, in charge of Monetary Policy–Member, ex officio;
- (c) one officer of the Bank to be nominated by the Central Board–Member, ex officio; and
- (d) three persons to be appointed by the Central Government–Members.
- (3) The Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation target.
- (4) The decision of the Monetary Policy Committee shall be binding on the Bank.]
Source: official text of The Reserve Bank of India Act, 1934 as published on India Code (PDF). All sections of the Reserve Bank of India Act, 1934.