In line with the Bank of England's committee approach, RBI, for the first time, will have external members to ensure policy-making gets more participatory.

Reserve Bank of India has set up a Technical Advisory Committee on Monetary Policy with external experts in the areas of monetary economics, central banking, financial markets and public finance.

The Technical Advisory Committee comprises:

Chairman, Governor, Reserve Bank of India

External Members -

Prof. D M Nachane, Indira Gandhi Institute for Development & Research (IGIDR)

Shri S S Tarapore, Former Deputy Governor, Reserve Bank of India

Dr. R H Patil Chairman, Clearing Corporation of India Ltd. (CCIL)

Dr. Shankar Acharya Honorary Professor, Indian Council for Research on International Economic Relations (ICRIER)

The Deputy Governor in charge of Monetary Policy, Reserve Bank of India will be the internal member on the committee.

Other Deputy Governor(s) and any expert depending on the requirement of the subject, will be special invitees. Heads of Department of Economic Analysis and Policy (DEAP) and Monetary Policy Department (MPD), Reserve Bank of India will also be in attendance. Monetary Policy Department will be the secretariat to the Committee.

The terms of reference of the Committee are:

i. to review macroeconomic and monetary developments, and

ii. to advise on the stance of monetary policy

The views of the Advisory Committee would be discussed in the following meeting of the Committee of the Central Board (CCB) of the Reserve Bank of India.

The Committee would meet at least once in a quarter.

The tenure of the present Committee will be up to January 31, 2007

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