Consider the following statements regarding the Monetary Policy Committee:
1. The Monetary Policy Committee is responsible for fixing India's benchmark policy interest rate.
2. The Monetary Policy Committee is a twelve member body, reconstituted afresh every year.
3. The Monetary Policy Committee is chaired by the Union Finance Minister.
Which of the statements given above is/are correct?

Question

Accepted Answer

A. 1 only. The Monetary Policy Committee genuinely does set India's benchmark policy interest rate, the repo rate, which is what statement 1 correctly says. But it is a six member body, not a twelve member one, and it is not reconstituted every year, so statement 2 is wrong, and it is chaired by the RBI Governor rather than the Union Finance Minister, so statement 3 is wrong too. Since only statement 1 holds, option A is correct.

Answer

A. 1 only

Answer

B. 2 only

Answer

C. 3 only

Answer

D. 1 and 2 only