RBI1 min read
Monetary Policy Committee
A six-member statutory committee under Section 45ZB of the RBI Act, 1934 responsible for fixing the benchmark policy interest rate (repo rate) to achieve 4% inflation target (±2%). Meets bi-monthly. Three members from RBI, three external.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Monetary Policy Committee in Indian corporate law?▼
A six-member statutory committee under Section 45ZB of the RBI Act, 1934 responsible for fixing the benchmark policy interest rate (repo rate) to achieve 4% inflation target (±2%). Meets bi-monthly. Three members from RBI, three external.
Q2. Why is Monetary Policy Committee important for compliance?▼
Monetary Policy Committee is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Monetary Policy Committee?▼
Monetary Policy Committee is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to RBI:
RBI Keeps Repo Rate Unchanged at 5.25% – MPC April 2026 Meeting Key Highlights
Published: 27 April 2026
RBI Creates 'Type I NBFC' Category and Opens Deregistration Window — NBFC Registration Amendment Directions, 2026
Published: 30 June 2026
RBI Issues Master Direction on Credit Derivatives, 2026 — Introduces TRS and Credit Index Products
Published: 26 June 2026