Consider the following statements regarding the Monetary Policy Committee (MPC):
i. The RBI Governor has to vote both in the first instance and in case of a tie.
ii. The Monetary Policy Committee meets three times a year.
Choose the correct answer:
Last updated Jun 24, 2026
Correct Answer:
Option D —
Neither i nor ii
This question also falls under the subject of Indian Economy, specifically focusing on Monetary Policy and the Banking Sector .Here is the breakdown of why both statements are incorrect:
Statement i: Incorrect According to the Reserve Bank of India (RBI) Act, the Governor (who acts as the ex-officio Chairperson of the MPC) votes like any other member in the first instance. However, they only exercise a second vote—known as a casting vote—in the event of a tie. They do not "have to" vote twice as a rule; the second vote is a tie-breaker.Statement ii: IncorrectThe law requires the Monetary Policy Committee to meet at least four times a year. In practice, the MPC usually meets bi-monthly (six times a year) to review the inflation target and decide on interest rates (Repo Rate).Summary Table: MPC Composition & RulesFeatureDetailsTotal Members6 (3 from RBI, 3 nominated by Govt. of India)ChairpersonGovernor of the RBIQuorumAt least 4 members must be presentObjectiveMaintain price stability while keeping growth in mindVotingEach member has one vote; Governor has a casting vote in ties
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
