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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework of Banks

The MPC wants to change its published annual meeting schedule. Which of the following is a change the RBI Act, 1934 permits?

The Governor may change the schedule if he considers an additional meeting necessary or a rescheduling needed for administrative exigencies. Otherwise, the schedule can be changed only by a decision at a prior MPC meeting, and any change must be published.

  1. AThe Deputy Governor alone reschedules a meeting without any decision
  2. BThe Governor, if he thinks an additional meeting is required or a meeting must be rescheduled for administrative exigenciesCorrect
  3. CAny three Members jointly reschedule a meeting
  4. DThe Central Government directs the change by notification

Explanation

Section 45Z-I(3) allows a change only by a decision at a prior MPC meeting, or if in the Governor's opinion an additional meeting is required or a meeting must be rescheduled because of administrative exigencies. Any change must be published as soon as practicable.

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