TMI BlogInsertion of new Chapter III F- Provisions of this Chapter to override other provisions of ActX X X X Extracts X X X X X X X X Extracts X X X X ..... st 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. Eligibility and selection of Members appointed by Central Government 45ZC. (1) The Members of the Monetary Policy Committee referred to in clause (d) of subsection (2) of section 45ZB shall be appointed by the Central Government from amongst persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy: Provided that no person shall be appointed as a Member, in case such person (i) has completed the age of seventy years on the date of appointment as Member; (ii) is a Member of any Board or Committee of the Bank; (iii) is an employee of the Bank; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho- (a) is, or at any time has been, adjudged as an insolvent; or (b) has become physically or mentally incapable of acting as a Member; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has failed to adequately disclose any material conflict of interest at the time of his appointment; or (e) does not attend three consecutive meetings of the Monetary Policy Committee without obtaining prior leave; or (f) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or (g) has acquired any post referred to in clauses (ii), (iii), (iv) and clause (v) of the proviso to sub-section (1) of section 45ZC; or (h) has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest. (2) No Member appointed under clause (d) of sub-section (2) of section 45ZB shall be removed under clause (d) or clause (e) or clause (f) or clause (g) or clause (h) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter. Vacancies, etc., not to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank as soon as practicable. (5) The quorum for a meeting of the Monetary Policy Committee shall be four Members, at least one of whom shall be the Governor and in his absence, the Deputy Governor who is the Member of the Monetary Policy Committee. (6) The meetings of the Monetary Policy Committee shall be presided over by the Governor, and in his absence by the Deputy Governor who is a Member of the Monetary Policy Committee. (7) Each Member of the Monetary Policy Committee shall have one vote. (8) All questions which come up before any meeting of the Monetary Policy Committee shall be decided by a majority of votes by the Members present and voting, and in the event of an equality of votes, the Governor shall have a second or casting vote. (9) The Central Government may, if it considers necessary, convey its views in writing to the Monetary Policy Committee from time to time. (10) The vote of each Member of the Monetary Policy Committee for a proposed resolution shall be recorded against such Member. (11) Each Member of the Monetary Policy Committee shall write a statement specifying the reasons for voting in favour of, or against the proposed resolution. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to timely implementation of proposed remedial actions. Explanation.- For the purposes of this section, the factors that constitute failure shall be such as may be notified by the Central Government in the Official Gazette, within three months from the date of the commencement of Part I of Chapter XII of the Finance Act, 2016. Power to make rules 45ZO. (1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of carrying out the provisions of this Chapter. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for (a) the procedure of functioning of the Search-cum- Selection Committee under sub-section (4) of section 45ZC; (b) the terms and conditions of appointment, (other than the remuneration and other allowances), of Members of the Monetary Policy Committee under sub-section (2) of section 45ZD; and (c) any other matter which is to be, or may be, prescribed by the Central Government by rules. . - Clauses 216 to 220 of the Bill seeks to amend certain provisions of the Reserve Bank of India Act, 1934. It is proposed to amend section 2 of the Act so as to inser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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