The Reserve Bank of India (RBI) on Wednesday appointed its Executive Director Janak Raj as member of the Monetary Policy Committee (MPC), the highest interest rate setting body. Raj replaces M D Patra, who was recently elevated as Deputy Governor of the RBI.
The decision to appoint Janak Raj was taken at the 581st meeting of the central board here on Wednesday.
"The Board nominated Dr Janak Raj, Executive Director on the Monetary Policy Committee as an ex officio member," the RBI said in a statement.
The government had in 2016 constituted MPC to set the benchmark interest rate.
The MPC is headed by the RBI Governor. Of the six members, three are nominated by the government, while the remaining three are from the RBI (including the Governor).
The Monetary Policy Committee takes decisions based on majority vote. Each member has one vote but the RBI Governor get a casting vote in case of a tie.