RBI has to publish decision, minutes of MPC meeting as per law

Chennai : Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday reiterated that the bank will not release its communication to the Central government to the public.

However, the decision taken at the MPC meeting and the minutes has to be published as per the RBI Act.

The RBI has scheduled a meeting of the Monetary Policy Committee (MPC) on November 3 under Section 45ZN of the RBI Act.

As per the section, when the RBI fails to meet the inflation target, it shall send a report to the Central government listing: (a) the reasons for failure to achieve the inflation target, (b) remedial actions proposed to be taken by it, and (c) an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of proposed remedial actions.

The MPC, at its upcoming meeting, will discuss what it would tell the Centre as to why it was not able to restrain the inflation.

The RBI may also sound out the Central government as to the course of inflation as well as the reasons as to why it may be at the elevated levels.

In India, the retail inflation rose to 7.41 per cent in September.

Das had said the communication with the central government is a privileged one and it will not be made public by the Bank.

He also reiterated that stand on Wednesday while addressing at the Annual FIBAC 2022 Conference Organised Jointly by FICCI and IBA in Mumbai.

However as per Sections 45ZK, the RBI shall publish, after the conclusion of every meeting of MPC, the resolution adopted by the Committee.

Further as per the Section 45ZL of the RBI Act, the minutes of the MPC meeting has to be published on the 14th day after every meeting including:

(a) the resolution adopted at the meeting of the MPC;

(b) the vote of each member of the MPC, ascribed to such member, on resolutions adopted in the said meeting; and

(c) the statement of each member of the MPC under sub-section (11) of Section 45ZL on the resolutions adopted in the said meeting.