---
title: "Monetary Policy Committee Definition | Model Diplomat"
description: "The Monetary Policy Committee sets India's benchmark interest rate to meet the inflation target, crucial for policymakers and economists."
url: "https://modeldiplomat.com/learn/glossary/monetary-policy-committee"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Monetary Policy Committee is the statutory six-member body that fixes India's benchmark policy interest rate to achieve the legislated inflation target.
- What is the composition of the Monetary Policy Committee?
- What is the statutory basis and inflation target of the MPC?
- What happens if the MPC fails to maintain inflation within the band?
- Who has the casting vote in the MPC and how often does it meet?

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