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Section 45ZB of the RBI Act, 1934 constitutes the Monetary Policy Committee with a specific composition. Which combination of members correctly captures the statutory MPC composition?
Answer & Solution
Correct answer: C.
1. Section 45ZB constitutes the Monetary Policy Committee.
2. The Governor sits as ex officio Chairperson.
3. The Deputy Governor in charge of monetary policy and an officer nominated by the Central Board are also ex officio members.
4. Three persons are appointed by the Central Government.
5. The other compositions involving Finance Minister, SEBI Chairman or PM's Office are not Section 45ZB.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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