Section 45ZB in The Reserve Bank of India Act, 1934
45ZB. Constitution of Monetary Policy Committee
(1)The Central Government may, by notification in the Official Gazette, constitute a Committee to be called the Monetary Policy Committee of the Bank.(2)The Monetary Policy Committee shall consist of the following Members, namely:--(a)the Governor of the Bank--Chairperson, ex officio;(b)Deputy Governor of the Bank, in charge of Monetary Policy--Member, ex officio;(c)one officer of the Bank to be nominated by the Central Board--Member, ex officio; and(d)three persons to be appointed by the Central Government--Members.(3)The Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation target.(4)The decision of the Monetary Policy Committee shall be binding on the Bank.
