Will Urjit Patel committee overhaul monetary policy framework?

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The Urjit Patel committee, set up by Raghuram Rajan days after he took charge of Reserve Bank of India to review and strengthen the monetary policy framework, is expected to come out with its recommendations shortly - though it has missed the three-month deadline.

The key question is whether the committee will emphasise on ending the discretionary monetary policy framework - in which multiple instruments are used to address a specific issue - to a rule-based framework that gives less headroom for manoeuvreing.

While it may not be possible to shift to a rule-based regime from a discretionary regime overnight, it is to be seen how far the panel goes to strike a balance between the two.