Annex A

Memorandum
Expert Committee to Revise and Strengthen the Monetary Policy Framework

It has been decided to constitute an Expert Committee to examine the current monetary policy framework of the Reserve Bank and recommend what needs to be done to revise and strengthen it with a view to, inter alia, making it transparent and predictable.

The Committee will comprise:

The Secretariat of the Committee will comprise Dr. Mridul Saggar, Director, Department of Economic and Policy Research, RBI, Shri Sitikantha Pattanaik, Director, Monetary Policy Department, RBI and Dr. Abhiman Das, Director, Department of Statistics and Information Management, RBI.

The terms of reference of the Committee are:

1. To review the objectives and conduct of monetary policy in a globalised and highly inter-connected environment.

2. To recommend an appropriate nominal anchor for the conduct of monetary policy.

3. To review the organisational structure, operating framework and instruments of monetary policy, particularly the multiple indicator approach and the liquidity management framework, with a view to ensuring compatibility with macroeconomic and financial stability, as well as market development.

4. To identify regulatory, fiscal and other impediments to monetary policy transmission, and recommend measures and institutional pre-conditions to improve transmission across financial market segments and to the broader economy.

5. In respect of all of the above, to carefully consider the recommendations of previous Committees/ Groups. The Committee is expected to submit its report within three months.

Memorandum
Expert Committee to revise and strengthen Monetary Policy Framework

In continuation of the Memorandum dated September 12, 2013 it has been decided to co-opt Dr. Praggya Das, Director, Monetary Policy Department (MPD) into the Secretariat of the Committee.

Additionally, the following resource persons will assist in the work of the Committee: