Lack of required quorum: RBI postpones monetary policy review meeting

By IndianMandarins- 29 Sep 2020


In an unprecedented move, RBI postpones Monetary Policy Review Meeting due to lack of required quorum. The RBI had to postpone its monetary policy review in the absence of the timely nomination of three government external members to its six-member Monetary Policy Committee. The MPC is a statutory committee responsible for fixing the benchmark interest rate.

While the MPC meets at least 4 times a year and publishes its decisions after each such meeting, for meeting to start, it requires at least 4 out of 6 members present. However, the four-year tenure of the three government-nominated members, Chetan Ghate, Pami Dua and Ravindra Dholakia, had ended on August 6, and the positions were still lying vacant. The last such meeting was held between August 4 and 6, 2020

“The meeting of the Monetary Policy Committee during September 29, 30 and October 1, 2020, as announced, is being rescheduled. The dates of the MPC’s meeting will be announced shortly,” the RBI stated.

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