The government on Tuesday appointed three new external members, including Ram Singh, Saugata Bhattacharya, and Nagesh Kumar, to the Reserve Bank of India's monetary policy committee. The reconstitution of the panel has come ahead of the crucial policy meeting on interest rate decisions slated between Oct. 7-9.
MPC has six members, of whom three are from within the central bank. The governor Shaktikanta Das, Deputy Governor Michael Patra, and Executive Director Rajiv Ranjan. While the three external members are appointed by the central government for four years.
NDTV Profit had exclusively reported on Monday that MPC members were said to be appointed as early as Tuesday.
These new members are replacing Mumbai professor Ashima Goyal, IIM-Ahmedabad professor Jayanth Varma, and New Delhi senior adviser Shashanka Bhide, whose tenure ends on Friday. The new members will be apprised by the outgoing members of the MPC on the overall process of the MPC.
The new panel members have to take a call on the rate cut given the changing dynamics of global central bank policy.
Experts are of the view that new members would take some time to acquaint themselves and may need time to take a call on rate cuts.
The rate cut is not completely ruled out and could be taken in the December policy meeting if inflation will be well within the band of 4-6%, they said.
Ram Singh is Director of Delhi School of Economics, while Dr. Nagesh Kumar is the Director and Chief Executive of the Institute for Studies in Industrial Development. Saugata Bhattacharya is an economist. All three will hold office for a period of four years, effective immediately.
The RBI Governor Shaktikanta Das, Cabinet Secretary TV Somanathan, and Economic Affairs Secretary Ajay Seth lead a selection group that selects the external members of the MPC. The decision has been approved by Prime Minister Narendra Modi.
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