The Central Government in exercise of the powers conferred by sub-section (3) of section 45ZC and sub-section (2) of section 45ZD of the Reserve Bank of India Act, 1934 makes Procedure for Selection of Members of Monetary Policy Committee and Terms and Conditions of their Appointment Rules, 2016. They shall come into force on the date of their publication in the Official Gazette.
Rule 3 provides the Procedure for selection of Members of Monetary Policy Committee.-
- The Search-cum-Selection Committee shall follow such procedure as may be determined by the Central Government from time to time.
- The procedure referred to in sub-rule (1) shall be fair, transparent and efficient.
- The Search-cum-Selection Committee may recommend up to three persons for every vacancy.
Rule 4 provides for Nomination of experts for Search-cum-Selection Committee.-
- Central Government shall maintain a list of independent experts from the field of economics or banking or finance or Monetary Policy, who are eligible to serve as members.
- The Central Government shall select the members from the list maintained under sub-rule (1) for constituting the Search-cum-Selection Committee.
Explanation.- For the purpose of sub-rule (1), the term “independent” shall mean a person who is not an employee of the Central Government or the Bank.
Rule 5 provides for Terms and conditions of appointment of Members of Monetary Policy Committee i.e. (1) No Member of the Monetary Policy Committee appointed under clause (d) of sub-section (2) of section 45ZB shall, during the term of his membership, have any financial or other interests as are likely to prejudicially affect his functions as such Member. (2) A Member of the Monetary Policy Committee referred to in sub-rule (1) shall be a part-time Member.
Ministry of Finance