Agreement on Monetary Policy Framework/Urjit Patel Committee on Inflation

The ‘Expert Committee to Revise and Strengthen the Monetary Policy Framework’, headed by then RBI Deputy Governor Urjit R Patel was constituted in 2015.

• The main objective of the committee was to recommend what needs to be done to revise and strengthen the current monetary policy framework with a view to making it transparent and predictable.
• Some of the major recommendations of the Urjit Patel Committee were-
  • RBI should adopt the new Consumer Price Index (CPI) for anchoring the monetary policy.
  • Set the inflation target at 4% with a band of +/- 2% around it.
  • Monetary policy decision making should be vested ....