1. What is a monetary policy committee
The Monetary Policy Committee (MPC) is a committee of the central bank Reserve Bank of India, headed by its Governor.
It was set up by amending the RBI Act after the government and RBI agreed to task RBI with the responsibility for price stability and infla tion targeting. The RBI and the government signed the Monetary Policy Framework Agreement on February 20, 2015.
2. What is the committee's mandate?
The MPC is en trusted with the task of fixing the benchmark policy inter est rate (repo rate) to contain inflation within the target level. The gov ernment may , if it considers necessary , convey its views, in writing, to the MPC from time to time. RBI is mandated to furnish necessary infor mation to the MPC to fa cilitate their decision making.
3. How is this committee structured
According to the government, the MPC will have six members.
Three each will be nominated by the government and the RBI and each member will have one vote. While the majority voice of the committee will be final in deciding the interest rates and the RBI will have to accept the verdict, the governor gets a casting vote in case of tie.
4. How is it different from current practice followed by the RBI ?
Currently , a technical advisory committee constituted by the RBI, which consists central bank's top brass including the deputy governor and the governor and external advisors, give their opinion and suggestions on what the RBI should do.But the governor's word is final on the rates and the advice of the technical advisors is not binding on the RBI
5. What is the global experience in this regard ?
Most of these countries have implemented their monetary policy targets through MPCs after formally adopting inflation targeting as a monetary policy objective.Notable among countries which have adopted inflation targeting as a monetary policy objective are New Zealand, England, Canada, South Africa, Sweden, among others. Research has found that inflation, in general, had come down to a much acceptable level in many countries after adopting inflation targeting than before.
Top 10 Tax Saver Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
---------------------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
-----------------------------------------------
