Ashima Goyal, Jayanth Varma, Shashanka Bhide Appointed As New RBI MPC Members

The government has appointed three members to the Monetary Policy Committee (MPC). These three members are Ashima Goyal, member of the Economic Advisory Council to the Prime Minister, Shashanka Bhide, senior advisor at National Council for Applied Economic Research, and Jayanth Varma who is a professor at the Indian Institute of Management, Ahmedabad. The MPC members are responsible for fixing the benchmark interest rate in India. 

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The Committee also reviews the policy interest rate known as Repo Rate. It is the rate at which banks borrow for a short period from the Reserve Bank of India (RBI). Experts say that all three great credentials and are suitable for the position. The term of these members will be for a period of four years or until further order. 

Interesting mix in the new MPC:

- One macro economist (Ashima Goyal)
-One with a background in agricultural economics (Shashanka Bhide)
-And a third with financial markets as a specialisation (JR Varma) https://t.co/UA32A2w1KY

— Ira Dugal (@dugalira) October 5, 2020

The six-person MPC was without three external members after Chetan Ghate, Pami Dua, and Ravindra Dholakia's term expired last month. The first meeting of the MPC was held on October 3, 2016, in Mumbai. Reportedly they served the term for four years.

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According to the rules, the committee requires at least four members to be present at a meeting. Delay in the appointments of new members averted the policy meeting from taking place last week. The RBI hasn’t yet said when it will resume the policy meeting reported The Print. The Reserve Bank’s Monetary Policy Department assists the Monetary Policy Committee in setting up the policy. 

Monetary Policy Committee Members Profile

Ashima Goyal is a Professor at Indira Gandhi Institute of Development Research in Mumbai. She is also a member of the Economic Advisory Council to the Prime Minister. Goyal is an independent director at Edelweiss Financial Services, Industrial Development Bank of India (IDBI), and the State Bank of India (SBI) General Insurance. 

Goyal's area of research includes open economy macroeconomics, international finance, financial markets and regulation, institutions and development.

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Jayanth Verma is a Professor at the Indian Institute of Management in Ahmedabad. He teaches capital markets, fixed income, risk management and corporate finance reported Business Line. He has been the Chairman of the Secondary Markets Advisory Committee and several other committees of SEBI (Securities and Exchange Board of India).

Shashanka Bhide is currently the senior advisor at the National Council for Applied Economic Research. His research has covered a number of areas in agriculture, macroeconomic modelling, infrastructure, and poverty. 

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Sagrika Giri is an intern with SheThePeople.TV.