i. The RBI Governor has to vote both in the first instance and in case of a tie.
ii. The monetary policy committee has to meet three times a year.
Choose the correct answer:
Understanding the Monetary Policy Committee (MPC)
This question asks us to evaluate two specific statements about the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC).
Statement I Analysis: RBI Governor's Voting Rights
Statement 'i' claims: "The RBI Governor has to vote both in the first instance and in case of a tie."
Let's break this down:
- The Monetary Policy Committee (MPC) consists of six members, including the RBI Governor, who serves as the Chairperson.
- Like other members, the RBI Governor participates in the committee's decision-making process and casts a vote on policy matters. This covers the "vote in the first instance" part.
- The RBI Act, 1934, explicitly states that in the event of an equality of votes (a tie), the Governor has a second or casting vote.
- Therefore, the Governor indeed votes initially as a member and also holds the casting vote to break ties.
Based on these facts, Statement 'i' is accurate.
Statement II Analysis: MPC Meeting Frequency
Statement 'ii' claims: "The monetary policy committee has to meet three times a year."
The legal framework governing the MPC requires it to meet more frequently:
- According to the RBI Act, 1934 (Section 45ZE), the MPC is mandated to meet at least four times in a year.
- While the specific dates are decided by the RBI, the minimum frequency is four meetings annually.
Thus, the claim that the MPC meets only three times a year contradicts the statutory requirement.
Statement 'ii' is inaccurate.
Conclusion on Correct Answer
Comparing our analysis with the statements:
- Statement 'i' is correct.
- Statement 'ii' is incorrect.
Therefore, the only correct statement is 'i' only.
Important Questions from Economic development
- Below mentioned are four countries having largest Foreign Exchange Reserves in the world in October 2024. Arrange these countries in decreasing order of their Foreign Exchange Reserves.
i. India
ii. Japan
iii. China
iv. Switzerland
Choose the correct order: - Arrange the following sources of revenue for the Government of India mentioned in the Union Budget of 2024-25 in descending order:
i. Goods & Service Tax & other taxes
ii. Borrowing and Other Liabilities
iii. Corporation tax
iv. Income Tax
Choose the correct answer: - The FRBM (Fiscal Responsibility and Budget Management) framework mandates the Central Government to limit the Central Government Debt and the General Government Debt by $31^{st}$ March 2025. What are the limits of the Central Government Debt and the General Government Debt, respectively?
- Consider the following statements regarding National Electronic Fund Transfer (NEFT) and Real-Time Gross Settlement (RTGS):
1. In National Electronic Fund Transfer (NEFT), the transaction happens in batches and hence it is slow
2. In Real-Time Gross Settlement(RTGS), transactions happen in real time and hence being fast
3. There is no minimum limit in RTGS
4. There is a Rs 2 Lakh minimum limit for NEFT
How many of the above Statement/s is/are correct? - "Quotas are the building blocks of the IMF's financial and governance structure. An individual member country's quota broadly reflects its relative position in the world economy". In the above context, which of the following parameters are used to calculate quota?
i. GDP of the country
ii. Degree of Openness
iii. Demographic dividend
iv. Economic variability
v. International Reserves
Choose the correct answer based on the code given below:
