WBCS.LIVE practice question

Who chairs the Monetary Policy Committee in India?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Union Finance Minister
  2. Deputy Governor, Reserve Bank of India
  3. Comptroller and Auditor General of India
  4. Governor, Reserve Bank of India

Correct answer and explanation

Correct answer: Governor, Reserve Bank of India

Explanation: The Monetary Policy Committee (MPC) in India is a six-member body responsible for setting the repo rate to maintain inflation within the target range (4% ± 2%). It was established in 2016 under the RBI Act, 1934 (amendment). The committee is chaired by the Governor of the Reserve Bank of India, who acts as its ex-officio chairman. Other members include RBI officials and government-appointed economists. This structure ensures a balance between government representation and RBI autonomy in monetary policy decisions.