Question

The Monetary Policy Committee (MPC) was established under which section of the RBI Act?

• A. Section 45ZB
• B. Section 22(1)
• C. Section 17(5)
• D. Section 33

Answer 1

Answer:

A. Section 45ZB

section 45ZB, inserted by the RBI (Amendment) Act, 2016, provides the legal basis for the constitution of the Monetary Policy Committee. The MPC is responsible for formulating monetary policy, especially decisions related to policy interest rates to control inflation and ensure price stability.