Which section of RBI act, 1934 deals with the constitution and powers of Monetary Policy Committee ?

Section 22
Section 24
Section 40
Section 45B
Section 45ZB

LohaHridoy

4 views

2025-01-04 04:42

1 Answers

AhmedNazir

Option 5 : Section 45ZB

The correct answer is Section 45Z.

The Monetary Policy Committee (MPC) is constituted by the Central Government under Section 45ZB of the Reserve Bank of India Act, 1934.
It determines the policy interest rate with regard to the use of monetary instruments under its control to achieve the goals specified in the RBI Act, 1934.
The Monetary Policy rates are fixed by a 6 member committee called The Monetary Policy Committee. Out of the 6 members, 3 are from RBI and the other 3 are appointed by GOI.
The MPC is required to meet at least four times a year. Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.
Instruments of RBI monetary policy are Repo Rate, Reverse Repo Rate, Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF), Bank Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Open Market Operations (OMOs), and Market Stabilisation Scheme (MSS).
Basic Information about other important sections of the RBI Act:
- Section 22: It deals with the right of RBI to issue banknotes.
- Section 24: It deals with the Denominations of notes issued by RBI.
- Section 40: It deals with the Transactions in foreign exchange (ForEx)
- Section 45B: It deals with the power of RBI to collect credit information.
Basic Information about Reserve Bank of India (RBI):
- It is the regulator of the entire banking system in India.
- Governor: Shaktikanta Das (25th governor).
- Founded: 1 April 1935 in Kolkata.
- Headquarter: Mumbai.
Important RBI Monitory Policy Rates (As of 9 Oct 2020)

Repo rate 4.00%

Reverse repo rate 3.35%

Bank rate 4.25%

Cash reserve ratio 3.00%

Statutory liquidity ratio 18.00%

4 views Answered 2022-09-04 04:29

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