Monetary Policy Committee Constituted by the Reserve Bank of | UPSC Current Affairs Daily

Monetary Policy Committee

Constituted by the Reserve Bank of India and led by the Governor of RBI. 
Monetary Policy Committee was formed with the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level.
The RBI governor controls the monetary policy decisions with the support and advice of the internal team and the technical advisory committee.
MPC was constituted under the Reserve Bank of India Act, 1934 as an initiative to bring more transparency and accountability in fixing the Monetary Policy of India.
 MPC conducts meetings at least 4 times a year and the monetary policy is published after every meeting with each member explaining his opinions. 
Urijit Patel Committee first proposed the idea for the formation of a five-member Monetary Policy Committee.
Later, the government proposed the setting up of a seven-member committee.
MPC is assisted by the Monetary Policy Department (MPD) of the Reserve Bank in the formulation of the policy.  
Monetary Policy Committee came into force on 27th June 2016. 
The Financial Markets Operations Department (FMOD) operationalizes the monetary policy, mainly through day-to-day liquidity management operations.
Objectives
To stabilize the business cycle.
To provide reasonable price stability.
To provide faster economic growth.
Exchange Rate Stability.
Instruments of Monetary Policy
Repo rate 
Reverse Repo rate
Liquidity Adjustment Facility (LAF)
Marginal Standing Facility (MSF)
Corridor
Bank Rate
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Open Market Operations (OMOs)
Market Stabilisation Scheme (MSS)