Urjit Patel Committee

An expert committee appointed to examine the current monetary policy framework of the Reserve Bank of India. It was headed by Urjit Patel, Deputy Governor of the Reserve Bank of India, now Governor of RBI.

Objective →To strengthened Monetary Policy Framework of RBI

Recommendations

• Use CPI as a mean to measure inflation of the country not WPI – (Food + Fuel)
• Target 4% CPI, +/-2% Band [control inflation in 2-6% range.]
• Tool Repo as policy rate, +/-1% spread in R-Repo & MSF,
• Time limit 0/12/24 (months) = 10/8/6% (CPI)
• Strategy keep Repo rate higher than CPI

RBI to fix accountability in monetary policy making – ....