Reserve Bank of India on 12 September 2013 constituted an expert committee for examining its Current Monetary Policy Framework. The committee would be responsible to recommend the measures to revise and strengthen the Monetary Policy Framework, by making it transparent and predictable.
Dr. Urjit Patel, Deputy Governor of Reserve Bank of India has been appointed as the Chairman of the Committee.
The terms of reference of the Committee are
• To review the objectives and conduct of monetary policy in a globalised and highly inter-connected environment.
• To recommend an appropriate nominal anchor for the conduct of monetary policy.
• To review the organisational structure, operating framework and instruments of monetary policy, particularly the multiple indicator approach and the liquidity management framework, with a view to ensuring compatibility with macroeconomic and financial stability, as well as market development.
• To identify regulatory, fiscal and other impediments to monetary policy transmission, and recommend measures and institutional pre-conditions to improve transmission across financial market segments and to the broader economy.
• To carefully consider the recommendations of previous Committees/Groups in respect of all of the above.
The Committee is expected to submit its report within three months.
