Chapter IIIF — Monetary Policy

Section 45ZB: Constitution of Monetary Policy Committee

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 45ZB constitutes the six-member Monetary Policy Committee consisting of the RBI Governor, the Deputy Governor in charge of monetary policy, one RBI officer nominated by the Central Board and three members appointed by the Central Government.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 45ZB in 2 minutes

Legal effectSection 45ZB constitutes the six-member Monetary Policy Committee consisting of the RBI Governor, the Deputy Governor in charge of monetary policy, one RBI officer nominated by the Central Board and three members appointed by the Central Government.

Operative ruleThe Governor is ex officio Chairperson; the section allocates membership rather than allowing RBI management to choose all members.

Connected lawEligibility/selection of Government appointees is dealt with in Section 45ZC, while meeting and voting are governed by Section 45ZI.

File evidenceFor each MPC cycle, record the legally constituted membership and any vacancy/replacement under the Act.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Rule 1

The Governor is ex officio Chairperson

Rule 2

the section allocates membership rather than allowing RBI management to choose all members.

Connected rule

Eligibility/selection of Government appointees is dealt with in Section 45ZC, while meeting and voting are governed by Section 45ZI.

Worked practical example

Facts. An internal RBI committee cannot substitute for the statutory MPC when deciding the policy rate; Section 45ZB fixes who comprises the decision-making body.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45ZB and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Eligibility/selection of Government appointees is dealt with in Section 45ZC, while meeting and voting are governed by Section 45ZI.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

RBI Monetary Policy Committee and Monetary Policy Process Regulations, 2016Operating regulations for MPC process, including scheduling, notice and process.

Questions and answers

What is the purpose of Section 45ZB?

Constitution of Monetary Policy Committee: Section 45ZB constitutes the six-member Monetary Policy Committee consisting of the RBI Governor, the Deputy Governor in charge of monetary policy, one RBI officer nominated by the Central Board and three members appointed by the Central Government.

Which statutory limb should be checked first?

Rule 1 - The Governor is ex officio Chairperson

What is the next legal boundary?

Rule 2 - the section allocates membership rather than allowing RBI management to choose all members.

What record should support the conclusion?

Section 45ZB file evidence: For each MPC cycle, record the legally constituted membership and any vacancy/replacement under the Act.

Primary sources

Source control for Section 45ZB: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.