Consider the following statements about the recently announced Monetary Policy Committee (MPC):

  1. The committee will be a six member committee headed by the Finance Secretary
  2. Members of the MPC will be appointed for a period of four years and will not be eligible for reappointment.

Which of the above statements is/are correct?

Answer: [B] 2 Only

First statement is incorrect because the six member committee will be headed by the RBI Governor. Members of the MPC will be appointed for a period of four years and shall not be eligible for reappointment. The committee will meet at least four times in a year and the government may, if it considers necessary, convey its views in writing to the MPC from time to time.

This question is a part of GKToday's Integrated IAS General Studies Module