Lack of quorum: Not enough members, so RBI pushes back MPC meeting

By: |
September 29, 2020 7:00 AM

While RBI didn’t ascribe any reasons,except to say new dates would be announced shortly, experts point to the lack of a quorum.

So far since March, the RBI MPC has cut rates by 115 basis points to fight the coronavirus pandemic and its economic fallout.

The Reserve Bank of India on Monday said the meeting of the monetary policy committee (MPC) scheduled between September 29 and October 1, has been rescheduled.

While RBI didn’t ascribe any reasons,except to say new dates would be announced shortly, experts point to the lack of a quorum. The government is yet to appoint three external members of the MPC after Chetan Ghate, Pami Dua and Ravindra H Dholakia completed their four-year tenures on September 22.

The MPC comprises six members, which includes the RBI governor, deputy governor, an executive director (ED) and three members nominated by the government.

The members from within RBI include governor Shaktikanta Das, deputy governor Michael Patra and executive director Mridul Saggar. At the last meeting in August, the MPC decided to leave the repo rate unchanged at 4%.

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