Urjit Patel Committee on Inflation

The ‘Expert Committee to Revise and Strengthen the Monetary Policy Framework’, headed by then RBI Deputy Governor Urjit R. Patel was constituted in 2015.

• The main objective of the committee was to recommend revisions and strengthening the monetary policy framework with a view to making it transparent and predictable.

Some Major Recommendations: RBI should adopt the new Consumer Price Index (CPI) for anchoring the monetary policy.

• Set the inflation target at 4% with a band of +/- 2% around it. Monetary policy decision making should be vested in a Monetary Policy Committee (MPC) that should be headed by the Governor.