The Reserve Bank of India (RBI), as the central bank of the country, plays a pivotal role in maintaining monetary stability and steering the economic direction through policy instruments. One such critical aspect of the RBI’s operations is the functioning of the Monetary Policy Committee (MPC), constituted under Section 45ZB of the Reserve Bank of India Act, 1934. A lesser-known but crucial provision that underpins the transparency of this process is Section 45ZL, which mandates the publication of the minutes of every MPC meeting.
What is Section 45ZL?
Section 45ZL of the Reserve Bank of India Act, 1934, stipulates that the RBI must publish the minutes of every MPC meeting on the 14th day after the meeting ends. This provision ensures transparency in the formulation of monetary policy, which is essential for anchoring market expectations and enhancing the credibility of the RBI.
The minutes must include three specific elements:
The resolution adopted by the MPC at the meeting;
The vote of each individual MPC member, explicitly ascribed to that member;
The statement of each member under subsection (11) of Section 45ZI, explaining the rationale behind their vote.
Why Does It Matter?
In modern central banking, transparency is as critical as action. Section 45ZL ensures that the public, markets, and policymakers have access to not only the final decision but also the diverse viewpoints and analytical reasoning of individual members of the MPC. This enables better understanding of the policy direction and fosters confidence in the RBI’s policy framework.
The 55th MPC meeting, held from June 4 to 6, 2025, is a recent example of how Section 45ZL contributes to transparent governance. As required by this section, the minutes of this meeting were published on June 20, 2025, providing insights into each member’s stance on reducing the repo rate and their assessments of inflation and growth dynamics.
Highlights of the 55th MPC Meeting
Chaired by RBI Governor Shri Sanjay Malhotra, the MPC decided to cut the repo rate by 50 basis points to 5.50%, marking a continued shift toward policy easing. This decision came amid a notable decline in headline inflation and a moderate growth outlook.
In an era of increasingly complex economic challenges and policy responses, Section 45ZL acts as a beacon of transparency. It assures stakeholders that monetary policy decisions are data-driven, debated rigorously, and made in the public interest—reinforcing trust in the RBI as the steward of India’s financial stability.
