Reserve Bank of India — Policy Reforms

Entry	Year	Description	Impact
Finance Act 2016	2016	The Finance Act, 2016 (Act 28 of 2016) inserted the RBI Act’s statutory Monetary Policy Committee arrangements, brought into force on 27 June 2016. Section 45ZB provides six members: the Governor, the Deputy Governor responsible for monetary policy, an RBI officer nominated by the Central Board, and three Central Government appointees. Under section 45ZD, those three appointed members have four-year terms and are not eligible for reappointment. Section 45ZI gives each member one vote and gives the Governor a casting vote if votes are equal.	The committee is a collective decision-making body, but its voting rule still gives the Governor a defined role in a tie. The statutory minimum is four meetings a year, not a promise that exactly four will occur. The quorum is four, including the Governor or, in the Governor’s absence, the designated Deputy Governor. Section 45ZL requires publication of minutes on the fourteenth day after a meeting, including individual votes and reasons. These rules help a student distinguish institutional composition, meeting validity and later accountability from the economic merits of a particular rate decision.