The Reserve Bank of India (RBI) could see its control over interest rates diluted under the latest proposals for a monetary policy committee (MPC) at the central bank, which call for a majority of external members.
The policy framework at the RBI is changing. In February it agreed an inflation target with the government and a more formal arrangement for setting policy seems inevitable.
Exactly how the MPC will look is still up for debate. The ministry of finance published a draft ‘Indian Financi