Consider the statutory framework of the Monetary Policy Committee established under the Reserve Bank of India Act of 1934. How many total members comprise this decision-making body?

💡 Solution & Explanation

The Monetary Policy Committee consists of six members, comprising three officials from the central bank and three external members appointed by the central government, with the Governor holding a casting vote in case of a tie. This institutional mechanism was enacted through an amendment to the Reserve Bank of India Act to institutionalize interest rate decisions. The primary mandate of the committee is to maintain retail inflation within the targeted tolerance band.