Current Affairs

ED Janak Raj Appointed as Member of MPC

Current context: The Reserve Bank of India (RBI) has appointed its Executive Director Janak Raj as member of the Monetary Policy Committee (MPC) on 29th January 2020.
ED Janak Raj Appointed as Member of MPC 
  • The central board decided to appoint Dr Janak Raj as the ex officio member of MPC, the highest interest rate-setting body at the 581st meeting.
  • Janak Raj has replaced Michael Debrata Patra, who was recently elevated as Deputy Governor of the RBI.
  • The MPC was constituted in 2016 by amending the Reserve Bank of India Act, 1934 with Finance Act (India), 2016 to set the benchmark interest rate.
  • It consists of 6 members in which 3 are nominated by the government, while the remaining 3 are from RBI (including the Governor who is the head of MPC).
  • The decisions of the MPC are taken by majority vote with each member having one vote to cast, however, the RBI Governor get a casting vote in case of a tie.
  • The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.

Question: 

Q.1 The Monetary Policy Committee (MPC) which was constituted in ____________, has recently appointed ______________as its ex officio member? 
a. 2015, Michael Debrata Patra
b. 2016, Dr Janak Raj
c. 2016, Michael Debrata Patra
d. 2015, Dr Janak Raj
ED Janak Raj Appointed as Member of MPC ED Janak Raj Appointed as Member of MPC Reviewed by Neha Verma on January 30, 2020 Rating: 5

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