Monetary policy committee has representations from RBI, Government of India and Independent MembersQuestion 9AnswerTrueFalse

Understanding the Structure of the Monetary Policy Committee

1. Monetary Policy Committee (MPC) Role: The MPC is responsible for formulating monetary policy in India, primarily focusing on controlling inflation.

2. Composition of the MPC: The MPC comprises:

   • Members from RBI: The Reserve Bank of India (RBI) plays a central role in monetary policy; therefore, senior officials from RBI are part of the committee.
   • Government of India Representatives: The Government appoints certain members, ensuring that the fiscal policy aligns with monetary policy.
   • Independent Members: There are independent experts with a background in economics or related fields to provide unbiased perspectives.

3. Conclusions: Since the MPC includes representation from the RBI, the Government of India, and independent members, the statement provided is indeed true.

Final Answer

True: The Monetary Policy Committee has representatives from RBI, the Government of India, and independent members.