The Monetary Policy Committee (MPC) is the six-member body that sets India's policy repo rate. Part 3 introduced it in a few paragraphs; this part goes inside it. It walks through the law section by section, explains how external members are chosen and removed, follows a meeting from the first survey to the minutes, records who has sat on the committee since 2016 and how they voted, and sets out every 2026 decision up to the October hike. It ends with a comparison with the US Federal Open Market Committee and the Bank of England's MPC. The rates themselves are explained in Part 4, and the target the MPC aims at in Part 7.
In the news
- 21 Oct 2026: Minutes of the 63rd meeting released. All six members voted "Yes" to the 25 bp hike, but Dr Nagesh Kumar and Prof. Ram Singh wrote that the stance should have stayed neutral. Prof. Singh wrote that current inflation was "primarily due to supply-side factors" and that a tightening stance might signal "an extended cycle of rate hikes". Why it matters for the exam: minutes on day 14 (7 + 14 = 21 October), with each member's vote and statement, are exactly what Section 45ZL requires.
- 7 Oct 2026: First hike since February 2023. At its 63rd meeting the MPC raised the repo rate by 25 bp to 5.50% unanimously and moved to a "calibrated tightening" stance by 4–2. It projected 2026-27 CPI inflation at 5.2%, with Q3 at 6.0%. Why it matters for the exam: the rate and the stance are voted on separately, and here the two votes differed.
- 19 Aug 2026: A hike foreshadowed in the minutes. In the August minutes Deputy Governor Poonam Gupta wrote that, with inflation projected to peak at 5.9% in Q3, "a case for a hike may emerge during the course of the year", though she voted to hold. Why it matters for the exam: members' statements are a form of forward guidance.
- 5 Aug 2026: Third straight hold of 2026-27. At the 62nd meeting the MPC kept the repo rate at 5.25%, unanimously on both rate and stance (neutral), and projected 2026-27 inflation at 5.0%. Why it matters for the exam: a fully unanimous decision is common; dissent is the exception.
- 5 Jun 2026: Projection raised, rate held. The 61st meeting held the repo rate at 5.25% by 6–0 and raised the 2026-27 CPI projection to 5.1% from 4.6% in April, as energy prices spiked with the West Asia conflict. Why it matters for the exam: the MPC sets policy on projected, not current, inflation.
- 8 Apr 2026: Ram Singh drops his stance dissent. At the 60th meeting Prof. Singh wrote, "I change my stand on the monetary policy stance from 'accommodative' to 'neutral'", making the decision unanimous on both counts for the first time since August 2025. Why it matters for the exam: members can and do change their positions between meetings.
- 23 Mar 2026: 2026-27 meeting calendar published. The RBI announced six meetings: 6–8 April, 3–5 June, 3–5 August, 5–7 October and 2–4 December 2026, and 3–5 February 2027. Why it matters for the exam: Section 45ZI(2) requires the schedule at least one week before the year's first meeting.
- 6 Feb 2026: Hold with a stance dissent. The 59th meeting kept the repo rate at 5.25% by 6–0, but Prof. Ram Singh "retained his view" that the stance should be accommodative, as he had in December 2025. Why it matters for the exam: a 6–0 rate vote can sit alongside a 5–1 stance vote.
Why a committee?
Until 2016 the Governor decided interest rates. The Urjit Patel Committee (January 2014) recommended a committee instead, and the Finance Act, 2016 created one in law. The RBI's own description is a move "from a Governor-centric decision making to the vesting of this responsibility with a collegial Monetary Policy Committee".
The case for a committee is that several minds with different backgrounds are less likely to make large errors than one, and that external members make the process less dependent on any single person. The RBI's 2020-21 Report on Currency and Finance looked at the first 22 meetings and concluded that the voting record showed "considerable independence" and "the absence of group think". The framework itself (the target and the failure rule) is covered in Part 3; this part focuses on the committee.
The law, section by section
Chapter IIIF of the RBI Act, 1934 (Sections 45Z to 45ZO) was inserted by the Finance Act, 2016 and came into force on 27 June 2016. Section 45Z makes the chapter override anything inconsistent elsewhere in the Act; 45ZA covers the inflation target. Everything from 45ZB onwards is about the committee.
| Section | Subject | Key rule |
|---|---|---|
| 45ZB | Constitution | Six members; decides the policy rate; decision binding on the RBI |
| 45ZC | Eligibility and selection | Expertise test; nine disqualifications; search-cum-selection committee |
| 45ZD | Terms | Four years; no reappointment; six weeks' notice to resign |
| 45ZE | Removal | Eight grounds, including missing three meetings without leave |
| 45ZF | Validity | A vacancy or defect does not invalidate proceedings |
| 45ZG | Secretary | RBI appoints a Secretary to the MPC |
| 45ZH | Information | RBI must give members all relevant information |
| 45ZI | Meetings | At least four a year; quorum four; casting vote; written statements |
| 45ZJ | Implementation | RBI publishes the steps it takes to implement decisions |
| 45ZK | Resolution | Published after every meeting |
| 45ZL | Minutes | Published on the 14th day after the meeting |
| 45ZM | Monetary Policy Report | Every six months |
| 45ZN | Failure | Report to the government if the target is missed |
| 45ZO | Rules | Government may make rules for the chapter |
45ZB: constitution
The Central Government constitutes the MPC by notification in the Official Gazette. It has six members:
- the Governor, chairperson, ex officio;
- the Deputy Governor in charge of monetary policy, ex officio;
- one officer of the RBI nominated by the Central Board, ex officio (in practice an Executive Director);
- three persons appointed by the Central Government.
The MPC "shall determine the Policy Rate required to achieve the inflation target", and its decision "shall be binding on the Bank". Note the division of labour: the government sets the target (45ZA), the MPC sets the rate (45ZB).
45ZC: who can be an external member
External members must be "persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy". No one can be appointed who:
- has turned 70 on the date of appointment;
- is a member of any Board or Committee of the RBI, or an RBI employee;
- is a public servant under Section 21 of the Indian Penal Code;
- is a Member of Parliament or a State Legislature;
- has ever been adjudged insolvent;
- has been convicted of an offence punishable with imprisonment of 180 days or more;
- is physically or mentally incapable; or
- has a material conflict of interest with the RBI that they cannot resolve.
The government appoints them on the recommendation of a Search-cum-Selection Committee of six:
- the Cabinet Secretary (chairperson);
- the RBI Governor or his representative (not below Deputy Governor);
- the Secretary, Department of Economic Affairs;
- three experts in economics, banking, finance or monetary policy, nominated by the government.
The Procedure for Selection of Members of Monetary Policy Committee and Terms and Conditions of their Appointment Rules, 2016 fill in the detail. The committee may recommend up to three persons for every vacancy; its procedure must be "fair, transparent and efficient"; the three experts are picked from a government list of independent experts (people who are not employees of the government or the RBI); and external members are part-time and must not hold interests that would prejudice their work.
45ZD and 45ZE: term and removal
External members hold office for four years and are not eligible for reappointment. One may resign by giving the government at least six weeks' written notice. The other terms are prescribed by the government, but their remuneration is set by RBI regulations.
The government may remove an external member who:
- is or has been adjudged insolvent;
- becomes physically or mentally incapable;
- is convicted of an offence involving moral turpitude;
- failed to disclose a material conflict of interest when appointed;
- misses three consecutive meetings without prior leave;
- acquires a financial or other interest likely to prejudice their work;
- takes up a disqualifying post (RBI board or employee, public servant, legislator); or
- has, in the government's opinion, abused their position.
For the last five grounds the member must first be given a reasonable opportunity to be heard.
45ZF to 45ZH: the machinery
- 45ZF: no act of the MPC is invalid merely because of a vacancy, a defect in an appointment or a procedural irregularity that does not affect the merits.
- 45ZG: the RBI appoints a Secretary to the MPC. In practice this is the head of the Monetary Policy Department, which prepares the analysis, the draft resolution and the members' statements.
- 45ZH: the RBI must give members all information relevant to the target. Any member may ask for more, "including any data, models or analysis", and whatever one member receives must go to all members. The only exception is non-public information about an identifiable entity or person.
45ZI: meetings and voting
Section 45ZI has thirteen sub-sections and is the most examined:
- The RBI must hold at least four meetings a year.
- The schedule must be published at least one week before the first meeting of the year.
- It can be changed only by a decision at a prior meeting, or if the Governor thinks an additional or rescheduled meeting is needed.
- Any change must be published as soon as practicable.
- Quorum: four members, at least one of whom is the Governor or, in his absence, the Deputy Governor on the MPC.
- The Governor presides, or in his absence that Deputy Governor.
- Each member has one vote.
- Questions are decided by a majority of members present and voting; on a tie the Governor has a second or casting vote.
- The Central Government may convey its views in writing to the MPC.
- Each member's vote is recorded against their name.
- Each member must write a statement giving reasons for voting for or against the resolution.
- Procedure, conduct and confidentiality are governed by regulations made by the Central Board.
- Proceedings are confidential.
The regulations referred to in (12) are the RBI Monetary Policy Committee and Monetary Policy Process Regulations, 2016. Under them, members ordinarily get at least 15 days' notice of a meeting, but an emergency meeting can be called at 24 hours' notice, or less with technology.
45ZJ to 45ZO: publication and accountability
- 45ZJ: the RBI publishes a document on the steps it will take to implement the MPC's decisions (in practice the liquidity measures announced with each policy).
- 45ZK: the resolution is published after every meeting.
- 45ZL: the minutes are published on the fourteenth day after the meeting. They must contain the resolution, each member's vote and each member's statement.
- 45ZM: a Monetary Policy Report every six months, explaining the sources of inflation and forecasting it six to eighteen months ahead. It comes out in April and October.
- 45ZN: if the RBI fails to meet the target (defined by notification as three consecutive quarters outside 2–6%), it must report the reasons, the remedial action and the time needed to return to target.
- 45ZO: the government may make rules, for example on the selection procedure.
Inside a meeting
The MPC meets six times a year, roughly every two months, for three days. The announcement comes on the third day. But the RBI's preparation starts about six weeks earlier. The RBI described the cycle in its Report on Currency and Finance 2020-21, counting days back from the policy announcement (day T):
| When | What happens |
|---|---|
| T−45 to T−30 | Surveys launched: Industrial Outlook; Services and Infrastructure Outlook; Order Books, Inventories and Capacity Utilisation (OBICUS); Bank Lending; Inflation Expectations of Households; Consumer Confidence |
| T−25 to T−15 | After the CPI and IIP releases, an Inter-Department Group analyses inflation and growth; the Survey of Professional Forecasters is launched |
| T−14 to T−10 | The MPC Secretariat fixes common assumptions; first round of projections and risk scenarios; pre-policy consultations with economists, trade bodies and market participants, chaired by the Governor |
| T−9 to T−3 | Dry-run presentations of survey results and inflation and growth deep-dives to top management |
| T−2 to T | The MPC meets: staff presentations, then closed-door deliberations, the vote and the resolution |
| T | Resolution and Governor's statement released, followed by a press conference |
| T+14 | Minutes published |
The quiet period
Members observe a silent (blackout) period from seven days before the decision day to seven days after the announcement. During it they avoid public comment on monetary policy, other than through the resolution and the Governor's statement.
What comes out on announcement day
On day T the RBI now publishes several documents, and it is worth separating them:
- the MPC resolution (the committee's decision, assessment, projections and vote);
- the Governor's Statement, a speech that covers both the MPC decision and the RBI's own measures;
- the Statement on Developmental and Regulatory Policies, which is the RBI's, not the MPC's (for example, regulatory or payments measures);
- in April and October, the Monetary Policy Report.
A post-policy press conference follows, and an edited transcript is posted a few days later (for October 2026, on 10 October).
The three committees
The external members have served in three batches. Because all three in each batch were appointed together for four years, the whole external side changes at once.
| Batch | External members | Appointed | Meetings |
|---|---|---|---|
| First | Dr Chetan Ghate (Indian Statistical Institute), Prof. Pami Dua (Delhi School of Economics), Dr Ravindra H. Dholakia (IIM Ahmedabad) | 29 September 2016 | 1st (3–4 Oct 2016) to 24th (4–6 Aug 2020) |
| Second | Dr Shashanka Bhide (NCAER), Dr Ashima Goyal (IGIDR), Prof. Jayanth R. Varma (IIM Ahmedabad) | 5 October 2020 | 25th (7–9 Oct 2020) to 50th (6–8 Aug 2024) |
| Third | Dr Nagesh Kumar (ISID), Saugata Bhattacharya (economist), Prof. Ram Singh (Delhi School of Economics) | Notified 1 October 2024 | 51st (7–9 Oct 2024) onwards; 63rd in Oct 2026 |
The handover in 2020 was messy. The first batch's term ended in September 2020 before successors were in place, and the RBI postponed the meeting scheduled for 29 September to 1 October 2020 because the committee lacked its external members. The new members were appointed on 5 October, and the meeting was held on 7–9 October. In 2024 the government notified the new members on 1 October, a week before their first meeting. The third batch's four-year term therefore runs to about the end of September 2028.
The internal seats change with the office-holders. Governors have been Urjit Patel (2016–2018), Shaktikanta Das (2018–2024) and Sanjay Malhotra (since 11 December 2024; his first MPC was February 2025). Michael Debabrata Patra sat first as the Board's nominee and later as Deputy Governor. The Board's nominees since then have included Janak Raj, Mridul K. Saggar, Rajiv Ranjan and, from the September–October 2025 meeting, Indranil Bhattacharyya. Dr Poonam Gupta has been the Deputy Governor on the MPC since the June 2025 meeting.
The voting record
The first MPC (2016–2020)
The first committee was the most divided. The RBI counted that, of the 22 meetings from October 2016 to March 2020, only 12 were unanimous on the direction of the rate, and even within those, three saw disagreement on the size of the cut. Every external member dissented at some point, between two and six times each. In April 2019, for instance, the repo rate was cut 4–2, with Dr Chetan Ghate and Deputy Governor Viral Acharya voting to hold, while Dr Dholakia voted to change the stance to accommodative.
Off-cycle meetings
Four meetings have been held off the published schedule:
- 24, 26 and 27 March 2020 (22nd meeting): brought forward from 31 March–3 April because of COVID-19. The repo rate was cut by 75 bp to 4.40%. All six voted to cut, but Dr Ghate and Prof. Dua wanted 50 bp.
- 20–22 May 2020 (23rd): brought forward from 3–5 June. A 40 bp cut to 4.00%, with Dr Ghate voting for 25 bp.
- 2 and 4 May 2022 (35th): an "off-cycle meeting to reassess the evolving inflation-growth dynamics" after the war in Ukraine. The MPC unanimously raised the repo rate by 40 bp to 4.40%, starting the 2022–23 tightening.
- 3 November 2022 (39th): an additional meeting held because inflation had been above 6% for three consecutive quarters, to prepare the RBI's report to the government under Section 45ZN. No rate decision was taken.
The Varma years (2020–2024)
Prof. Jayanth R. Varma became the committee's best-known dissenter. The minutes record his positions:
- October 2020: voted against the forward guidance that the accommodative stance would continue "at least during the current financial year and into the next".
- August 2021 to February 2022: "expressed reservations" on the accommodative stance at four straight meetings.
- August and September 2022: reservations on, then a vote against, the "withdrawal of accommodation" stance.
- December 2022: voted against the 35 bp hike (5–1).
- February 2023: with Dr Ashima Goyal, voted against the final 25 bp hike to 6.50% (4–2, the closest rate vote under the second MPC).
- April 2023 to December 2023: reservations on the stance at every meeting while the rate was held.
- February and April 2024: voted to cut by 25 bp and change the stance to neutral (5–1 each time).
- June and August 2024: joined by Dr Goyal, again for a 25 bp cut and a neutral stance (4–2).
Dr Goyal had also dissented in September 2022, preferring a 35 bp hike to the 50 bp agreed. In all, 7 of the second MPC's 25 rate decisions were not unanimous.
The third MPC (2024–)
The new members began with dissent too. In October 2024 Dr Nagesh Kumar voted for a 25 bp cut when the rate was held (5–1). In December 2024 Dr Kumar and Prof. Ram Singh both voted for a cut (4–2). Once easing began under Governor Malhotra, the rate votes became unanimous: the cuts of February and April 2025 were 6–0. In June 2025 all six voted to cut, but Saugata Bhattacharya preferred 25 bp to the 50 bp chosen. Since then the disagreements have been on the stance. Dr Kumar and Prof. Singh wanted an accommodative stance in October 2025; Prof. Singh alone in December 2025 and February 2026; and in October 2026 the same two preferred to stay neutral rather than move to calibrated tightening.
The casting vote has never been used
No MPC vote has ever been tied. The closest splits have been 4–2, so the Governor's casting vote under Section 45ZI(8) has never been needed. Note, though, how the arithmetic favours the RBI side: with three internal members and a casting vote, a 3–3 split would go the Governor's way.
The 2026 meetings
| Meeting | Dates | Decision | Repo after | Stance | Rate vote | Stance vote | CPI projection, 2026-27 | Minutes |
|---|---|---|---|---|---|---|---|---|
| 59th | 4–6 Feb | Hold | 5.25% | Neutral | 6–0 | 5–1 (Singh: accommodative) | n.a. | 20 Feb |
| 60th | 6–8 Apr | Hold | 5.25% | Neutral | 6–0 | 6–0 | 4.6% | 22 Apr |
| 61st | 3–5 Jun | Hold | 5.25% | Neutral | 6–0 | 6–0 | 5.1% | 19 Jun |
| 62nd | 3–5 Aug | Hold | 5.25% | Neutral | 6–0 | 6–0 | 5.0% | 19 Aug |
| 63rd | 5–7 Oct | +25 bp | 5.50% | Calibrated tightening | 6–0 | 4–2 (Kumar, Singh: neutral) | 5.2% | 21 Oct |
The story of the year is a committee moving together. In February it was still split between a neutral majority and one member who wanted to signal easing. By April, with energy prices up after the outbreak of the West Asia conflict, Prof. Singh had moved to neutral. In June and August the projections rose, from 4.6% to 5.1% and then 5.0%, with Q3 inflation expected at 5.9%. In August the Deputy Governor's statement raised the possibility of a hike. By October, with September inflation at 5.54% and Q3 projected at 6.0%, all six voted to raise the rate. The split was only over how strongly to signal more.
The 64th meeting is scheduled for 2–4 December 2026, with the decision due on 4 December, followed by 3–5 February 2027.
Worked examples
1. When will the December minutes appear? Section 45ZL counts from the meeting. The December meeting ends on 4 December 2026, so 4 + 14 = 18 December 2026. Check the rule against 2026: 6 Feb + 14 = 20 Feb; 8 Apr + 14 = 22 Apr; 5 Jun + 14 = 19 Jun; 5 Aug + 14 = 19 Aug; 7 Oct + 14 = 21 Oct. All five match the dates the RBI used.
2. Quorum and the casting vote. Suppose two external members are ill. Four members are present (the Governor, the Deputy Governor, the RBI nominee and one external member), so the quorum of four, including the Governor, is met. If they split 2–2 on a hike, the decision goes whichever way the Governor voted, because he has a "second or casting vote". If instead the Governor and the Deputy Governor were both absent, there could be no valid meeting, however many others attended.
3. When does the third batch leave? Appointed by the notification of 1 October 2024 for four years, the external members serve until about 30 September 2028. The 2028-29 calendar will need new external members for the meeting in early October 2028, unless the government acts earlier.
4. The real policy rate in October 2026. The real rate is the nominal rate minus expected inflation. With repo at 5.50% and the MPC's 2026-27 projection at 5.2%: 5.50 − 5.2 = +0.3 percentage points. Against the Q3 projection of 6.0%: 5.50 − 6.0 = −0.5 percentage points. Before the hike, at 5.25%, the real rate against Q3 was 5.25 − 6.0 = −0.75 percentage points. A negative real rate is still stimulative, which is why several members said further action might be needed.
How the MPC compares abroad
| India: MPC | US: FOMC | UK: Bank of England MPC | |
|---|---|---|---|
| Members | 6 (3 RBI, 3 external) | 12 voting: 7 Board governors, the New York Fed president and 4 of the other 11 Reserve Bank presidents in rotation | 9: Governor, 3 Deputy Governors, Chief Economist, 4 external members |
| Who appoints outsiders | Central Government, on a search committee's advice | Governors: the US President, with Senate confirmation | Chancellor of the Exchequer |
| Outsiders' term | 4 years, no reappointment | Not applicable (no external members) | Fixed terms; can be reappointed |
| Scheduled meetings | At least 4 by law; 6 in practice | 8 a year | 8 a year |
| Target | 4% CPI ± 2%, set by the government every five years | Dual mandate (maximum employment and stable prices) | 2% CPI, set by the government |
| Minutes | 14th day after the meeting | About three weeks after the decision | Published with the decision |
| Transcripts | Not published | Released after about five years | Released after eight years |
| Missed target | Report to government after 3 quarters outside 2–6% | No such rule | Open letter to the Chancellor if CPI is above 3% or below 1% |
All three decide by majority vote; at the Bank of England, as in India, the Governor settles a tie. Two differences stand out. India's committee is the smallest of the three and the only one in which outsiders hold half the votes. And India's external members cannot be reappointed, whereas the Bank of England's can. The RBI's own 2021 review noted that most central banks stagger the terms of their members so that the whole committee does not change at once, and suggested that transcripts could be recorded and released after five to seven years. As of October 2026 the three external members still share one start date, and no transcripts are published.
Debates about the design
- Independence of the external members. They are chosen by a committee chaired by the Cabinet Secretary and appointed by the government, which can also convey its views in writing (45ZI(9)). The safeguards are the fixed term, the bar on reappointment and limited grounds for removal.
- The RBI's built-in edge. Three internal members plus the Governor's casting vote mean the RBI side cannot be outvoted if it stays united. In practice, internal members have dissented too (Viral Acharya in 2019, for example).
- Simultaneous terms. The 2020 handover showed the risk: a meeting was postponed because there were no external members.
- Votes on the stance. The Act asks the MPC to decide only the policy rate; the stance is a practice. It can be useful forward guidance, as in October 2026, but it also creates a second vote on which members can split.
Common exam traps
- The government constitutes the MPC (45ZB), not the RBI. The RBI only organises the meetings and provides the Secretary.
- The search-cum-selection committee is chaired by the Cabinet Secretary, not the Finance Secretary or the Governor.
- The age limit is 70 at appointment. It is not a retirement age for serving members.
- The term is four years with no reappointment. Contrast RBI Governors (who can be reappointed) and Bank of England external members.
- Quorum is four, not three or five, and must include the Governor or, in his absence, the Deputy Governor on the MPC.
- Minutes on the 14th day; the Monetary Policy Report every six months. Don't swap them.
- The casting vote has never been used, because no vote has been tied.
- A unanimous rate vote does not mean a unanimous decision. In October 2026 the rate vote was 6–0 but the stance was 4–2.
- The Statement on Developmental and Regulatory Policies is the RBI's, not the MPC's.
Key facts at a glance
| Legal basis | Chapter IIIF, RBI Act, 1934 (Sections 45Z to 45ZO), in force 27 June 2016 |
| Constituted by | Central Government, by Gazette notification (Section 45ZB) |
| Members | Governor (chair), DG in charge of monetary policy, RBI officer nominated by the Board, 3 government appointees |
| External members' eligibility | Expertise in economics, banking, finance or monetary policy; under 70 at appointment |
| Selection | Search-cum-selection committee: Cabinet Secretary (chair), Governor or nominee, Secretary DEA, 3 experts; up to 3 names per vacancy |
| Term | 4 years, no reappointment; 6 weeks' notice to resign |
| Removal | 8 grounds, including missing 3 consecutive meetings without leave |
| Meetings | At least 4 a year by law, 6 in practice; schedule published at least a week before the first |
| Notice | Ordinarily 15 days; 24 hours for an emergency meeting |
| Quorum | 4, including the Governor or the DG on the MPC |
| Voting | One member, one vote; majority of those present and voting; Governor's casting vote (never used) |
| Quiet period | 7 days before the decision to 7 days after |
| Publication | Resolution after each meeting (45ZK); minutes on day 14 (45ZL); MPR every 6 months (45ZM) |
| Batches | 2016: Ghate, Dua, Dholakia; 2020: Bhide, Goyal, Varma; 2024: Kumar, Bhattacharya, Singh |
| Off-cycle meetings | March 2020, May 2020, May 2022, November 2022 (Section 45ZN) |
| Latest decision | 63rd meeting, 7 October 2026: repo +25 bp to 5.50% (6–0), calibrated tightening (4–2) |
| Next meeting | 64th, 2–4 December 2026 |
Exam corner: what to remember
- 45ZB composition, 45ZC selection, 45ZD term, 45ZE removal, 45ZI meetings, 45ZK resolution, 45ZL minutes, 45ZM MPR, 45ZN failure.
- Six members, three and three. The three internal members are all ex officio; the three external ones are appointed by the government.
- Search-cum-selection committee: Cabinet Secretary + Governor + DEA Secretary + 3 experts.
- Four years, no reappointment; under 70; part-time.
- Quorum four; casting vote with the Governor; written statements by every member.
- The 2026-27 calendar: 6–8 Apr, 3–5 Jun, 3–5 Aug, 5–7 Oct, 2–4 Dec 2026, 3–5 Feb 2027.
- October 2026: 63rd meeting, repo 5.50%, rate vote 6–0, stance vote 4–2 (Kumar and Singh for neutral).
- Famous dissenter: Prof. Jayanth R. Varma (2020–2024). Longest-running recent stance dissent: Prof. Ram Singh, October 2025 to February 2026.
- The first MPC meeting was on 3–4 October 2016, under Urjit Patel; it cut the repo rate by 25 bp to 6.25%, 6–0.
For exam-specific syllabus and pattern details, see our pages for RBI Grade B, SBI PO and IBPS PO.
Test yourself
Who chairs the search-cum-selection committee that recommends external members of the MPC?
Show answer
Answer: (c) Section 45ZC(2) makes the Cabinet Secretary the chairperson; the Governor or his representative and the Secretary, Department of Economic Affairs are members, with three experts.
Which of these would disqualify a person from appointment as an external member of the MPC?
Show answer
Answer: (b) Members of Parliament or a State Legislature are barred under Section 45ZC; the age bar applies only at 70.
The government may remove an external member who fails to attend how many consecutive meetings without prior leave?
Show answer
Answer: (b) Section 45ZE(1)(e) sets the limit at three consecutive meetings, after a hearing.
At its meeting of 5–7 October 2026, how did the MPC vote?
Show answer
Answer: (c) All six voted for the 25 bp hike, but Dr Nagesh Kumar and Prof. Ram Singh preferred a neutral stance to calibrated tightening.
The MPC's 64th meeting, scheduled for 2–4 December 2026, ends on 4 December. On which date must its minutes be published?
Show answer
Answer: (c) Section 45ZL requires minutes on the fourteenth day after the meeting: 4 + 14 = 18 December.
Four MPC members are present, including the Governor, and they vote 2–2. What happens?
Show answer
Answer: (c) Four members including the Governor make a quorum, and Section 45ZI(8) gives the Governor a second or casting vote on a tie.
Which MPC member dissented most often between 2020 and 2024, including a vote against the December 2022 hike?
Show answer
Answer: (b) Prof. Varma dissented on the stance at most meetings from August 2021 and on the rate in December 2022, February 2023 and through 2024.
Which was NOT an off-cycle or additional MPC meeting?
Show answer
Answer: (d) The October 2026 meeting was on the schedule published on 23 March 2026; the other three were advanced or additional meetings.
Under the RBI Act, external members of the MPC hold office for
Show answer
Answer: (b) Section 45ZD(1): four years and not eligible for reappointment.
How many voting members does the US Federal Open Market Committee have, compared with India's MPC?
Show answer
Answer: (a) The FOMC has 12 voting members; India's MPC has 6 (the Bank of England's MPC has 9).
Further reading
- Reserve Bank of India Act, 1934 (RBI's annotated copy): the full text of Chapter IIIF, worth reading once in the original since exam questions quote it closely.
- RBI, Report on Currency and Finance 2020-21, Chapter III: Monetary Policy Decision Making Process: the RBI's own account of the meeting cycle, the first MPC's voting record and cross-country comparisons.
- Minutes of the MPC meeting, 5–7 October 2026: read all six statements to see how members reasoned their way to the hike and the stance split.
- Report of the Expert Committee to Revise and Strengthen the Monetary Policy Framework (Urjit Patel Committee), 2014: where the MPC was first proposed, with the reasoning for its design.
- Monetary Policy Report, October 2026: the statutory half-yearly report behind the October decision.
- RBI, Review of Monetary Policy Framework: A Discussion Paper, August 2025: the RBI's review of nine years of the framework, including the November 2022 breach.
- Federal Reserve, About the FOMC and Bank of England, Monetary Policy Committee: the official descriptions of the two committees India's is most often compared with.
Sources
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