How the RBI Monetary Policy Committee Works and Meets

Updated October 2026. Based on the official sources listed at the end.

Introduction

The Monetary Policy Committee (MPC) is responsible for fixing the benchmark policy interest rate in India to maintain price stability while keeping economic growth in mind. Understanding how the MPC operates and when it meets helps ordinary citizens, borrowers, and savers anticipate changes in loan interest rates and overall economic conditions.

Key facts

The MPC is set up under Section 45ZB of the Reserve Bank of India Act, 1934.
The committee consists of members including the Governor of the Reserve Bank of India, who chairs the meetings.
For the financial year 2026-27, the MPC meeting schedule is set as per Section 45ZI of the Reserve Bank of India Act, 1934.
Decisions regarding policy rates are made based on a detailed assessment of macroeconomic and financial developments, growth, and inflation outlooks.
Minutes of the MPC meetings are published on the fourteenth day after every meeting pursuant to Section 45ZL of the Reserve Bank of India Act, 1934.

Composition and Legal Mandate

The Monetary Policy Committee is constituted under Section 45ZB of the Reserve Bank of India Act, 1934. The sixty-third meeting of the MPC was held under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. Other members who attended included Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta (Deputy Governor in charge of monetary policy), and Shri Indranil Bhattacharyya (an Executive Director nominated by the Central Board under Section 45ZB(2)(c) of the Act).

The primary mandate of the MPC is to maintain price stability while keeping in mind the objective of growth. The committee is committed to its price stability mandate and endeavours to progressively align inflation with its target.

Meeting Schedule for 2026-27

As per Section 45ZI of the Reserve Bank of India Act, 1934, the Monetary Policy Committee holds scheduled meetings throughout the fiscal year. The scheduled meeting dates for 2026-27 are:

April 6, 7 and 8, 2026
June 3, 4 and 5, 2026
August 3, 4 and 5, 2026
October 5, 6 and 7, 2026
December 2, 3 and 4, 2026
February 3, 4 and 5, 2027

Decision-Making and Policy Statements

During its meetings, the MPC reviews staff macroeconomic projections, survey results, stakeholder consultations, and alternative scenarios around outlook risks. Decisions are finalized through voting by the members. For example, during the 63rd meeting held from October 5 to 7, 2026, the MPC voted to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 5.50 per cent. Consequently, the standing deposit facility (SDF) rate was adjusted to 5.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate were adjusted to 5.75 per cent. The MPC also decided to change its stance to calibrated tightening.

According to Section 45ZL of the Reserve Bank of India Act, 1934, the Reserve Bank publishes the minutes of the proceedings on the fourteenth day after every meeting. The published minutes include the adopted resolution, the vote of each member ascribed to them, and individual statements made by members.

Frequently asked questions

What is the policy repo rate?

The policy repo rate is the benchmark interest rate under the liquidity adjustment facility at which the central bank conducts operations. Changes to this rate influence other borrowing and lending rates in the economy.

How are decisions made in the MPC?

Decisions are made collectively by the members of the committee after assessing domestic and global macroeconomic conditions, growth, and inflation outlooks, followed by a formal vote on the resolution.

When are the minutes of the MPC meetings made public?

Under Section 45ZL of the Reserve Bank of India Act, 1934, the Reserve Bank publishes the minutes of the proceedings on the fourteenth day after every meeting of the MPC.

What does a change in the policy stance to calibrated tightening mean?

A stance of calibrated tightening signals that rate cuts are off the table in the near term, and future policy action can only be a rate hike or a pause depending on evolving conditions and the outlook.

Official sources

This explainer is for general information only and is not financial, tax or legal advice. Rules change; check the official source for the latest position.

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