The Central Government has appointed three external members to the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) after the four year tenure of the earlier nominees ended in September.
The Appointments Committee of the Cabinet (ACC), headed by the prime minister, approved the names of 3 eminent economists Prof. Ashima Goyal, Prof. Jayanth R Varma and Dr. Shashanka Bhide as members of the rate-setting Monetary Policy Committee of the RBI.
As per the RBI Act, the three new members would have 4 year terms.
The RBI had to postpone its last meeting of Monetary Policy Committee (MPC) beginning 29 September as the government could not feel the vacancies after the tenure of the three external members Ravindra Dholakia, Pami Dua and Chetan Ghate ended in September. Members of the MPC are not eligible for reappointment.
Prof. Jayanth R Varma is an expert on financial markets and his research interests include financial sector reforms, functioning of banks and foreign exchange risk management. Shashanka Bhide is an expert on agriculture and inflation matters.
According to the RBI Act, external members of the MPC will be appointed by the central government “from amongst persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy.”Subscribe Taxscan AdFree to view the Judgment