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24
July 2017
The
government nominees on the Reserve Bank of India's (RBI) Monetary Policy
Committee (MPC) are to be paid Rs 1.5 lakh per meeting along with air travel
and other reimbursements, according to a decision taken by the RBI. The Total Investment & Insurance
Solutions
The
six-member MPC, constituted last year, has three persons appointed by the
government while the others, including the Governor, are from the RBI. The Total Investment & Insurance
Solutions
The
central government appointed members would "receive a remuneration of Rs
1,50,000 for devoting time and work for each meeting of the committee which
they attend, and other expenses relating to air travel, local transportation
and accommodation as may be decided by the central board from time to
time," according to the RBI's latest regulations on the MPC's functioning.
The
regulations stipulated that all the MPC members will need to observe a
"silent period" seven days before and after the monetary policy
review meeting for "utmost confidentiality".
"Members
shall observe a silent or blackout period starting seven days before the
voting/decision ray and ending seven days after the day policy is announced.
During this period, they will avoid public comment on issues related to
monetary policy other than through the MPCs communication framework," the
regulations said. The Total Investment
& Insurance Solutions
Moreover,
members cannot reveal outside the committee any confidential information
accessed during the monetary policy deliberations, the RBI said. The Total Investment & Insurance
Solutions
The
three government nominees to the panel are Chetan Ghate, Professor at the
Indian Statistical Institute, Pami Dua, Director at the Delhi School of
Economics, and Ravindra H. Dholakia, Professor at the Indian Institute of
Management, Ahmedabad. The Total
Investment & Insurance Solutions
The RBI
also asked MPC members to be mindful of any conflict between their personal and
public interest while interacting with profit-making organisations or making
personal financial transactions,
"While
interacting with profit-making organisations or making personal financial
decisions, they shall be mindful of, and weigh carefully, any scope for
conflict between personal interest and public interest," it said. The Total Investment & Insurance
Solutions
All
members need to disclose their assets and liabilities and update this
information once a year.
The RBI
normally holds its monetary policy review once every two months and the latest
regulations said the schedule of the MPC meetings for the entire financial year
needs to be announced in advance.
Normally,
at least 15 days of notice is required for convening a meeting, but an
emergency meeting can be called with 24 hours notice for each member, while
technology-enabled arrangements need to be made for meetings called at even
shorter notice. The Total Investment
& Insurance Solutions
In this
connection, the central bank has earlier said that the decision to demonetise
Rs 1,000 and Rs 500 currency notes was taken by the RBI board at 5.30 p.m. on
November 8, which was less than three hours before Prime Minister Narendra Modi
announced the measure to the nation.
Following
the RBI's latest policy review last month, Governor Urjit Patel told reporters
here that the RBI Monetary Policy Committee had turned down the Finance
Ministry's invite for a discussion ahead of the panel's policy review meeting. The Total Investment & Insurance
Solutions
The RBI
maintained its key interest rate at 6.25 per cent for its fourth successive
monetary policy review, dashing the government's hopes of a reduction.The Total Investment & Insurance
Solutions
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