RBI appoints Janak Raj as member of MPC

RBI appoints Janak Raj as member of MPC

The Reserve Bank of India (RBI) appointed its Executive Director Janak Raj as member of the Monetary Policy Committee (MPC).

He will replace M D Patra, who was recently elevated as Deputy Governor of the RBI.

The decision to appoint Janak Raj was taken at the 581st meeting of the central board in Mumbai.

MPC:

The government had in 2016 constituted MPC to set the benchmark interest rate.

The MPC is headed by the RBI Governor.

Of the six members, three are nominated by the government, while the remaining three are from the RBI (including the governor).

The MPC takes decisions based on majority vote. Each member has one vote but the RBI governor get a casting vote in case of a tie.