RBI: Even after one and a half year, 2000 rupee notes worth 7117 crores not returned, RBI gave this big update

RBI MPC Date: This time in the MPC which will run from 7 to 9 October, the pressure on RBI to cut interest rates has increased. Now it remains to be seen what decision the central bank will take on this. However, experts say that this time there is less hope of a cut in interest rates.

RBI MPC New Member: Fed Reserve had recently given relief to America by reducing the interest rate by 0.50%. After this, the pressure on RBI to reduce the policy rate increased. A decision regarding this is to be taken in the RBI MPC meeting on October 9. Meanwhile, news came that the tenure of three external members of MPC is ending on October 4. In such a situation, it was said that this time any decision on the reduction of repo rate can be postponed in the absence of three members. But now the Finance Ministry has restructured the Monetary Policy Committee (MPC) of the Reserve Bank of India, which decides the policy rate, before October 4.

The decision to cut interest rates had to be postponed in 2020

In a statement issued by the Finance Ministry, it was said that Ram Singh, Saugata Bhattacharya and Nagesh Kumar have been appointed as the new external members of the MPC. The government has notified the restructuring of the MPC under the Reserve Bank of India Act, 1934. In the year 2020, due to non-appointment of external members of the MPC, the RBI had to postpone the decision to cut interest rates. Actually, there are a total of six members in the monetary policy review of RBI. Out of six, three are RBI officials and three are external members. The tenure of external members is four years.

Under the restructuring of the MPC,

Prof. Ram Singh, Director of Delhi School of Economics, economist Saugata Bhattacharya and Dr. Nagesh Kumar, Director and CEO of the Institute of Industrial Development Studies, New Delhi have been made its external members. The head of the MPC, which decides the policy rate, is the Governor of the Reserve Bank of India. The first meeting of the restructured Monetary Policy Committee (MPC) is to be held from 7 to 9 October. After the meeting, Governor Shaktikanta Das will announce the bi-monthly monetary policy review on 9 October.

About Prof. Ram Singh

Prof. Ram Singh, appointed to the RBI MPC, is the Director of the Delhi School of Economics. He has more than two decades of experience in the field of education. His specialization is Public Economics, Financial Regulations and Indian Economy. Singh did his PhD in Economics from JNU and post-doctoral study from Harvard University. He has played many roles including Director of Delhi School of Public Policy and Governance and Chairman of the Agricultural Economics Research Center. He has also been a visiting professor at Brown University, University of Hamburg and Paris School of Economics, among other institutions.

Who is Saugata Bhattacharya?

Economist Saugata Bhattacharya, who has more than three decades of experience, has been included as an external member in Shaktikanta Das's team. His background is in economic analysis, policy advocacy, consumer behavior. Before joining the MPC, Bhattacharya has worked as Chief Economist and Executive Vice President at Axis Bank. Here he specialized in financial markets and infrastructure finance.

Who is Nagesh Kumar?

Eminent economist Dr. Nagesh Kumar has been given a place in the RBI's MPC. Currently, he is working as the Director and Chief Executive of the Institute of Industrial Development Studies (ISID). Prior to ISID, he served as Chief Economist and Director of Macroeconomic Policy for the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). He has also served on the boards of major global organizations including India's Exim Bank, World Bank and Asian Development Bank. Kumar holds a PhD in Economics from Delhi School of Economics.

The external members of the Monetary Policy Committee appointed by the Central Government will hold office for a term of four years with immediate effect or until further orders, whichever is earlier. The MPC was formed in 2016 after finalising the Monetary Policy Framework Agreement. Inflation targets were set in it. Under this, the RBI was given the responsibility of keeping inflation at four percent with a variation of two percent.

Who all are in the MPC now?

At present, the external members of the MPC are Dr. Ashima Goyal, member of the Prime Minister's Economic Advisory Council, Shashank Bhide, Senior Advisor in the National Council for Applied Economic Research and Professor Jayant R. Verma of the Indian Institute of Management-Ahmedabad. The newly appointed members will replace them. As per the provisions of the RBI Act, the MPC has six members. Three members are appointed from the RBI and three by the Central Government. The six-member committee is chaired by the RBI Governor.