Key MPC meet deferred over delay in naming external members

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Mumbai, Sep 28 (IANS) In a rare instance, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting has been postponed and a major reason for the decision is possibly the three vacant posts of external members which the government has not filled so far.

The quorum for the meeting of the MPC is four members, with each member having one vote.

Three members of the panel are from the RBI, including the central bank’s Governor and the rest three are external or independent members. The four-year terms of three external members of the MPC, appointed in 2016, ended last month and the vacant posts are yet to be filled by the government.

On Monday, a day before the start of the penultimate policy review for 2020 was scheduled, the RBI said, in a statement, that the policy review meet has been rescheduled.

“The dates of the MPC’s meeting will be announced shortly,” it said.

Sector experts have expressed astonishment over the delay as the MPC meeting and its decision on the policy rate has been playing a key in the monetary and liquidity situation in the country amid the pandemic.

–IANS
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