The Reserve Bank of India has set up an expert committee to revise and strengthen the monetary policy framework to make it transparent and predictable.
Chaired by Deputy Governor Urjit Patel, the committee will review the objectives and conduct of monetary policy in a globalised and highly inter-connected environment and recommend an appropriate nominal anchor for the conduct of the policy. It is expected to submit its report within three months, the RBI said.
The committee will also review the organisational structure, operating framework and instruments of monetary policy, particularly the multiple indicator approach and the liquidity management framework, with a view to ensuring compatibility with macroeconomic and financial stability, as well as market development.
Further, the committee will identify regulatory, fiscal and other impediments to monetary policy transmission. It will also recommend measures and institutional pre-conditions to improve transmission across financial market segments and to the broader economy and even consider recommendations of previous committees/groups, the RBI said.
Members of the committee include Chetan Ghate, Associate Professor, Economics and Planning Unit, Indian Statistical Institute, New Delhi, Sajjid Z. Chinoy, Chief Economist and Executive Director, J.P. Morgan, Rupa Nitsure, Chief Economist, Bank of Baroda, Gangadhar Darbha, Executive Director, Nomura Securities, and Deepak Mohanty, Executive Director, Reserve Bank of India.