Monetary Policy Committee UPSC
The Monetary Policy Committee (MPC) is a committee constituted by India’s RBI (Reserve Bank of India), led by its Governor, which is assigned with the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level. The MPC substitutes the current system of things where the RBI governor, with the support and advice of the internal team under him and a technical advisory committee, controls the monetary policy decisions by all means. Initially, the main decisions related to interest rates were taken by the Governor of RBI alone before the establishment of the committee. Urjit Patel committee first proposed the setting up of a committee to decide on monetary policy. The concept was in the news recently.