New Delhi: In a huge reform push, the government is set to constitute a monetary policy committee under the Reserve Bank of India act 1934.  
 
The committee will have 6 members out of which 3 members will be appointed by RBI while the others will be appointed by the government. The committee will be entitled with the responsibility to formulate monetary policy of the country which is currently prepared by the RBI governor. 
 
This announcement comes a week after RBI governor Raghuram Rajan’s announcement to not pursue a second term.
 
The failure of negotiations on his possible return had sparked fears that Mr. Rajan’s departure could put at risk the inflation targeting central banker’s gains in stabilising Asia’s third-largest economy over the past three years.