- Replaces earlier framework under which RBI gov had complete control over monetary policy decisions
- a Technical Advisory Committee advises RBI on monetary policy decisions
- RBI under no obligation to accept recommendations
MPC members
- 3 appointed by RBI
- RBI Gov
- Deputy Gov
- One official nominated by RBI
- 3 external selection committee
- Cabinet Secretary
- Secretary of Dept. of Economic Affairs
- RBI Gov
- 3 experts in economics and banking
- RBI Gov has veto in case of ties