RBI governor expects new external members of MPC to be in appointed on time

Reserve Bank of India

Reserve Bank of India (RBI) Governor Shaktikanta Das said on September 5 that he expects the appointment of the new external members of the monetary policy committee (MPC) to happen on time.

“New members obviously have to be appointed then only we can hold the meeting. It should happen. We expect the new members to be in place in time,” Das said on the sidelines of the FIBAC 2024 event.

The Narendra Modi government is in process of appointing new external members to the Monetary Policy Committee of the Reserve Bank of India.

The appointments will be finalised ahead of the October MPC, reports by Bloomberg and CNBC-TV 18 said. RBI MPC comprises six members. These include three central bank officials and three external members.

The MPC is led by RBI Governor Shaktikanta Das. The external members of the MPC are usually renowned economists or finance experts. The external members of the current MPC are – Ashima Goyal, Jayanth R Varma and Shashanka Bhide. Goyal, a well-known economist, is a professor at Indira Gandhi Institute of Development Research. Varma is professor at IIM-A. Bhide is a senior advisor at Delhi’s National Council of Applied Economic Research.

All the members were appointed in October 2020. Since there is no provision for extension under the RBI Act, the Centre will have to make new appointments by the end of the tenure.

While the tenure of external members ends on October 4, the next MPC is slated for October 9.