Rangarajan favours RBI majority in Monetary Policy Committee

Rangarajan favours RBI majority in Monetary Policy Committee

NEW DELHI: Joining the debate over the powers of RBI Governor in setting policy rate, bank's former head C Rangarajan today said the government can do away with the veto power of Governor but the majority of members in the Monetary Policy Committee should be from the apex bank. 

Rangarajan's comments come at a time when the government and RBI are finalising the structure of the Monetary Policy Committee (MPC), which will decide the interest rates. 

"The Monetary Policy Framework Agreement has put the onus of inflation management on RBI. I would think that the MPC should have a majority of members from the RBI and the veto power of Governor can be done away with," Rangarajan told PTI. 

Source :http://timesofindia.indiatimes.com/business/india-business/Rangarajan-favours-RBI-majority-in-Monetary-Policy-Committee/articleshow/48410456.cms