Section Section 21
of the Indian Penal Code (45 of 1860); is a Member of Parliament or any State Le
section 21 of the Indian Penal Code (45 of 1860); is a Member of Parliament or any State Legislature; (vi) has been at any time, adjudged as an insolvent; (vii) has been convicted of an offence which is punishable with an imprisonment for a term of one hundred and eighty days O more; (viii) is physically o mentally incapable of discharging the duties of a Member of the Monetary Policy Committee; O1 (ix) has a material conflict of interest with the Bank and is unable to resolve such conflict. (2) The Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of section 4SZB shall be appointed by the Central Government on the recommendations made by Search- cum-Selection Committee consisting of the following members, namely: Cabinet Secretary__Chairperson;
Ins. by Act 28 of 2016, s. 222 (W.e.f. 27-6-2016).
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(b Governor of the Reserve Bank of India or his representative (not below the rank of Deputy Governor) ~member; Secretary, Department of Economic Affairs_~member; three experts in the field of economics or banking or finance or Monetary policy to be nominated by the Central Government-_~members. (3) While selecting the Members of the Monetary Policy Committee, the Search-cum-Selection Committee shall follow such procedure as may be prescribed by the Central Government. 4SZD. Terms and conditions of appointment of Members of Monetary Policy Committee. The Members of the Monetary Policy Committee appointed under clause (d) of sub-section (2) of section 4SZB shall hold office for a period of four years and shall not be eligible for re-appointment (2_ The terms and conditions of appointment of Members of the Monetary Policy Committee shall be such as may be prescribed by the Central Government and the remuneration and other allowances payable to such Members shall be such as may be specified by the regulations made by the Central Board. (3) A Member may resign from the Monetary Policy Committee, at any time before the expiry of his tenure under sub-section (Z), by giving to the Central Government; written notice of not less than six weeks, and on the acceptance of the resignation by the Central Government, he shall cease to be Member of the Monetary Policy Committee. A5ZE: Removal of Members of Monetary Policy Committee: (1) The Central Government may remove from office any Member of the Monetary Policy Committee appointed under clause (d) of sub- section (2) of section 4SZB, who (a) is, or at any time has been, adjudged as an insolvent; O (b) has become physically o mentally incapable of acting as Member; Or has been convicted of an offence which; in the opinion of the Central Government; involves moral turpitude; or has failed to adequately disclose any material conflict of interest at the time of his appointment; or does not attend three consecutive meetings of the Monetary Policy Committee without obtaining prior leave; or has acquired such financial Or other interest as is likely to affect prejudicially his functions as a Member; or g has acquired any post referred to in clauses (ii), (iii) , (iv) and clause of the proviso to sub- section (1) of section 4SZC; or (h) has, in the opinion of the Central Government; SO abused his position as to render his continuance in office detrimental to the public interest (2) No Member appointed under clause (d) of sub-section (2) of section 4SZB shall be removed under clause (d) or clause (e) Or clause (f) or clause (g) or clause (h) of sub-section (1) unless he has been given reasonable opportunity of being heard in the matter: A5ZF_ Vacancies; etc-, not to invalidate proceedings of Monetary Policy Committee.~No act O1 proceeding of the Monetary Policy Committee shall be invalid merely by reason of any vacancy in, Or any defect in the constitution of the Monetary Policy Committee; O any defect in the appointment of person acting as Member of the Monetary Policy Commit ttee; or any irregularity in the procedure of the Monetary Policy Committee not affecting the merits of the case.
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ASZG . Secretary to Monetary Policy Committee:
The Bank shall appoint a Secretary to the Monetary Policy Committee to provide secretariat support to the said Committee. (2 The Secretary shall perform such functions and in such manner as may be specified by the regulations made by the Central Board. ASZH: Information for Monetary Policy Committee Members. The Bank shall provide all information to the Members of the Monetary Policy Committee that may be relevant to achieve the inflation target. (2) In addition to information provided by the Bank under sub-section (1), any Member of the Monetary Policy Committee may, at any time, request the Bank for additional information, including any data, models o analysis. (3) The Bank shall provide the information, aS referred to in sub-section (2), to the Member of the Monetary Policy Committee, within reasonable time, unless the information pertains to an entity Or person and is not publicly available; or b the information allows an entity O person to be identified and the information is not publicly available. Any information provided by the Bank to a Member of the Monetary Policy Committee shall be provided to all the Members of the Monetary Policy Committee. 45Z-I. Meetings of Monetary Policy Committee:-(1) The Bank shall organise at least four meetings of the Monetary Policy Committee in a year: The meeting schedule of the Monetary Policy Committee for a year shall be published by the Bank at least one week before the first meeting in that year: (3) The meeting schedule may be changed only (a) by way of a decision taken at a prior meeting of the Monetary Policy Committee; O (b) if, in the opinion of the Governor, an additional meeting is required or meeting is required to be rescheduled due to administrative exigencies Any change in meeting schedule shall be published by the Bank as soon as practicable The quorum for a meeting of the Monetary Policy Committee shall be four Members, at least oe of whom shall be the Governor and in his absence, the Deputy Governor who is the Member of the Monetary Policy Committee. The meetings of the Monetary Policy Committee shall be presided over by the Governor; and in his absence by the Deputy Governor who is a Member of the Monetary Policy Committee. Each Member of the Monetary Policy Committee shall have one vote (8) All questions which come up before any meeting of the Monetary Policy Committee shall be decided by majority of votes by the Members present and voting, and in the event of an equality of votes, the Governor shall have a second or casting vote_ The Central Government may, if it considers necessary, convey its views in writing to the Monetary Policy Committee from time to time. (10) The vote of each Member of the Monetary Policy Committee for a proposed resolution shall be recorded against such Member: (11) Each Member of the Monetary Policy Committee shall write a statement specifying the reasons for voting in favour of, or against the proposed resolution. duct; code of confidentiality and any other incidental matter for the functioning of the Monetary Policy Committee shall be such as may be specified by the regulations made by the Central Board,
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(13) The proceeding of the Monetary Policy Committee shall be confidential. ASZJ. Steps to be taken to implement decision of Monetary Policy Committee: The Bank shall publish document explaining the steps to be taken by it to implement the decisions of the Monetary Policy Committee, including any changes thereto. (2) The particulars to be included in such document and the frequency of publications of such document shall be such as may be specified by the regulations made by the Central Board. 4SZK Publication of decisions: The Bank shall publish, after the conclusion of every meeting of the Monetary Policy Committee, the resolution adopted by the said Committee; A5ZL_ Publication of proceedings of meeting of Monetary Policy Committee.~The Bank shall publish, o the fourteenth day after every meeting of the Monetary Policy Committee, the minutes of the proceedings of the meeting which shall include the following, namely: the resolution adopted at the meeting of the Monetary Policy Committee; b the vote of each member of the Monetary Policy Committee, ascribed to such member, on resolutions adopted in the said meeting; and the statement of each member of the Monetary Policy Committee under sub-section (11) of section 45ZL on the resolutions adopted in the said meeting: 4SZM: Monetary Policy Report: The Bank shall, once in every six months, publish document to be called the Monetary Policy Report, explaining the sources of inflation; and b the forecasts of inflation for the period between six to eighteen months from the date of publication of the document: (27 The form and contents of the Monetary Policy Report shall be such as may be specified by the regulations made by the Central Board. 4SZN. Failure to maintain inflation target: Where the Bank fails to meet the inflation target, it shall set out in a report to the Central Government the reasons for failure to achieve the inflation target; remedial actions proposed to be taken by the Bank; and an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of proposed remedial actions. Explanation.~For the purposes of this section, the factors that constitute failure shall be such as may be notified by the Central Government in the Official Gazette, within three months from the date of the commencement of Part I of Chapter XII of the Finance Act, 2016. 45Z0. Power to make rules: (1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of carrying out the provisions of this Chapter. (27 In particular and without prejudice to the generality of the foregoing power, such rules may provide for the procedure of functioning of the Search-cum-Selection Committee under sub-section (3) of section 45ZC; (b_ the terms and conditions of appointment; (other than the remuneration and other allowances), of Members of the Monetary Policy Committee under sub-section (2) of section 4SZD; and any other matter which is to be, Or may be, prescribed by the Central Government by rules:]
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CHAPTER IV
GENERAL PROVISIONS
46. Contribution by Central Government to the Reserve Fund.~The ' [Central Government] shall transfer to the Bank rupee securities to the value of five crores of rupees to be allocated by the Bank to the Reserve Fund. [46A. Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund.~The Bank shall contribute every year such sums of money as it may consider necessary and feasible to do SO, to the National Rural Credit (Long Term Operations) Fund and the National Rural Credit (Stabilisation) Fund established and maintained by the National Bank under sections 42 and 43, respectively, of the National Bank for Agriculture and Rural Development Act; 1981 (61 of 1981).] 3[46C. National Industrial Credit (Long Term Operations) Fund.--(1) The Bank shall establish and maintain Fund to be known as the National Industrial Credit (Long Term Operations) Fund to which shall be credited an initial sum of ten crores of rupees by the Bank; (b) such further sums of money as the Bank may contribute every year: Provided that the annual contribution during each of the five years commencing with the year ending on the 30th day of June, 1965 shall not be less than five crores of rupees: Provided further that the Central Government may, if the circumstances SO require, authorise the Bank to reduce the said sum of five crores of rupees in any year: (2) The amount in the said fund shall be applied by the Bank only to the following objects, namely: 4* S[(c) the making to the Exim Bank '[or the Reconstruction Bank [or the Small Industries Bank [or the National Bank for Financing Infrastructure and Development or the other development financial institution]], as the case may be] of loans and advances for the purposes of any business of the Exim Bank 6[or the Reconstruction Bank "[or the Small Industries Bank S[or the National Bank for Financing Infrastructure and Development or the other development financial institution,]] as the case may be]; the purchasing of bonds and debentures issued by the Exim Bank 6[or the Reconstruction Bank '[or the Small Industries Bank '[or the National Bank for Financing Infrastructure and Development or the other development financial institution,]] as the case may be]:] 9[46D. National Housing Credit (Long Term Operations) Fund.- (1) The Bank shall establish and maintain Fund to be known as the National Housing Credit (Long Term Operations) Fund to which shall be credited every year such sums of money as it may consider necessary. (27 The amount in the said Fund shall be applied by the Bank only to the following objects namely: the making to the National Housing Bank of loans and advances for the purpose of any business of the National Housing Bank; (b) the purchasing of bonds and debentures issued by the National Housing Bank:] 10 [47. Allocation of surplus profits. ~After making provision for bad and doubtful debts_ depreciation in assets, contributions to staff and superannuation fund 1![and for all other matters for which provision is to be made by Or under this Act or which] are usually provided for by bankers, the balance, of the profits shall be paid to the Central Government: ]
1. Subs. by the M.O. 1937, for "G.G. in C. 2. Subs_ by Act 61 of 1981, 61 and the Second Schedule, for sections 464 and 46B (w.ef. 12-7-1982). Earlier these sections were inserted by Act 24 of 1955, s. 7 (w.ef: 8-5-1955)_ 3_ Ins. by Act 18 of 1964, s. 38 and the Second Schedule (W.e.f: 1-7-1964). Clauses (a) and (b) omitted by Act 53 of 2003, $. 12 and the Schedule (w.e.f: 2-7-2004). 5. Ins by Act 28 of 1981, s. 40 and the Second Schedule (w.e.f: 1-1-1982)- 6. Ins: by Act 62 of 1984,s. 71 and the Third Schedule W.e.f: 20-3-1985). 7 . Ins. by Act 39 of 1989, 53 and the Second Schedule (w.e.f: 7-3-1990)_ 8 Ins_ by Act 17 of 2021, s. 47 and the second schedule we.f. 19-4-2021)_ 9 Ins. by Act 53 of 1987_ 56 and the Second Schedule (w.e.f: 9-7-1988)_ 9. Subs. by Act 62 of 1948, s. 7 and the Schedule, for
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