)
Starting April 1, 2014, the Reserve Bank of India (RBI) will move to a new regime of conducting monetary policy review wherein monetary policy will be reviewed once every two months — in line with the recommendation of the Urjit Patel panel on monetary policy.
Under the new regime, RBI will hold six reviews in each financial year, against the present practice of eight. At present, monetary policy authority conducts four quarterly reviews and four mid-quarter reviews.
Policy reviews will ordinarily be undertaken in a two-monthly cycle, consistent with the availability of key macroeconomic and financial data, RBI said in a statement.
Patel panel on Monetary Policy framework had suggested that the Monetary Policy committee (MPC) should ordinarily meet once every two months. It should retain the discretion to meet and recommend policy decisions outside the policy review.
