RBI MPC Meeting, October 2026: Test Your Knowledge With 20+ GK Questions And Answers

RBI MPC Meeting October 2026: We all know that the Reserve Bank of India’s Monetary Policy Committee (MPC) plays an important role in deciding India’s monetary policy. As it mainly focuses on keeping inflation under control. Meanwhile, it also supports economic growth. 

The MPC decides the policy repo rate and reviews economic conditions such as inflation, growth, liquidity and global developments. 

The committee has six members, including the RBI Governor and three members appointed by the Central Government. Its decisions can affect loan interest rates, EMIs, savings and investment returns. 

Test your knowledge of the RBI MPC with these easy and informative questions.

Also Read: RBI MPC Meeting October 2026: What Happens If Repo Rate Is Hiked, Unchanged Or Cut?

RBI Monetary Policy Committee (MPC): 21 GK Questions and Answers

Q) How many members are there in the RBI’s Monetary Policy Committee (MPC)?

A) Four
B) Five
C) Six
D) Eight

Answer: C) Six

Explanation: The RBI’s Monetary Policy Committee has six members. Three are from the RBI, while three are appointed by the Central Government.

Q) Who is the chairperson of the Monetary Policy Committee?

A) Union Finance Minister
B) RBI Governor
C) Chief Economic Adviser
D) RBI Deputy Governor

Answer: B) RBI Governor

Explanation: The RBI Governor is the ex-officio chairperson of the MPC. This means the Governor holds the position because of the office they hold.

Q) How many MPC members are appointed by the Central Government?

A) Two
B) Three
C) Four
D) Six

Answer: B) Three

Explanation: Three members of the six-member MPC are appointed by the Central Government. The other three are from the RBI.

Q) What is the main purpose of the RBI’s Monetary Policy Committee?

A) To prepare the Union Budget
B) To control inflation and support economic growth
C) To collect income tax
D) To regulate stock exchanges

Answer: B) To control inflation and support economic growth

Explanation: The MPC decides monetary policy with the aim of keeping inflation under control while supporting economic growth.

Q) What is the RBI’s target for CPI inflation under the MPC framework?

A) 3%
B) 4%
C) 5%
D) 6%

Answer: B) 4%

Explanation: The RBI’s inflation target is 4%. It has a tolerance band of 2% to 6%, meaning inflation can move within this range.

Q) How many times must the Monetary Policy Committee meet at least in a year?

A) Two times
B) Four times
C) Six times
D) Twelve times

Answer: B) Four times

Explanation: The law requires the MPC to meet at least four times every year. In practice, the RBI normally holds six scheduled MPC meetings annually.

Q) When did the first meeting of the reconstituted Monetary Policy Committee take place?

A) 2014
B) 2015
C) 2016
D) 2018

Answer: C) 2016

Explanation: The first meeting of the reconstituted MPC was held in 2016 after the statutory framework for the committee was created.

Q) Under which section of the RBI Act, 1934, is the MPC constituted?

A) Section 17
B) Section 42
C) Section 45ZB
D) Section 45IA

Answer: C) Section 45ZB

Explanation: Section 45ZB of the RBI Act, 1934, provides for the constitution of the Monetary Policy Committee.

Q) What happens if there is a tie in voting during an MPC decision?

A) The decision is cancelled
B) The Finance Minister gets the deciding vote
C) The RBI Governor has a casting vote
D) The decision is postponed for one month

Answer: C) The RBI Governor has a casting vote

Explanation: If the votes are equally divided, the RBI Governor has a second or casting vote to decide the outcome.

Q) What is the tenure of the external members of the MPC?

A) Two years
B) Three years
C) Four years
D) Five years

Answer: C) Four years

Explanation: The external members of the MPC serve for four years. They are not eligible for reappointment.

Q) Within how many days after an MPC meeting are its minutes published?

A) 7 days
B) 14 days
C) 21 days
D) 30 days

Answer: B) 14 days

Explanation: The official minutes of an MPC meeting are published 14 days after the meeting. The minutes include the views and votes of members.

Q) What is the repo rate?

A) The rate at which banks lend money to customers
B) The rate at which the RBI lends short-term money to banks against government securities
C) The rate at which the government lends money to the RBI
D) The rate paid on savings accounts

Answer: B) The rate at which the RBI lends short-term money to banks against government securities

Explanation: The repo rate is the rate at which the RBI provides short-term funds to commercial banks against eligible government securities.

Q) What does CRR stand for?

A) Cash Reserve Ratio
B) Credit Reserve Rate
C) Central Reserve Ratio
D) Cash Return Rate

Answer: A) Cash Reserve Ratio

Explanation: CRR is the percentage of certain bank deposits that commercial banks must keep with the RBI in cash.

Q) Under the Marginal Standing Facility (MSF), banks can borrow overnight funds by using which part of their reserve requirement?

A) CRR
B) Capital Adequacy Ratio
C) SLR portfolio
D) Priority Sector Lending

Answer: C) SLR portfolio

Explanation: Under the MSF, eligible banks can borrow overnight funds from the RBI by dipping into their SLR holdings, subject to applicable rules.

Q) Which rate is the floor of the Liquidity Adjustment Facility (LAF) corridor?

A) Bank Rate
B) MSF rate
C) Standing Deposit Facility (SDF) rate
D) CRR

Answer: C) Standing Deposit Facility (SDF) rate

Explanation: The Standing Deposit Facility, or SDF, serves as the floor of the RBI’s LAF corridor.

Q) Who heads the Search-cum-Selection Committee that selects the external MPC members?

A) Cabinet Secretary
B) RBI Governor
C) Union Finance Minister
D) Prime Minister

Answer: A) Cabinet Secretary

Explanation: The Search-cum-Selection Committee for choosing external MPC members is headed by the Cabinet Secretary.

Q) Which committee originally recommended the formation of the Monetary Policy Committee?

A) Urjit Patel Committee
B) Narasimham Committee
C) Kelkar Committee
D) Raghuram Rajan Committee

Answer: A) Urjit Patel Committee

Explanation: The Urjit Patel Committee recommended changes to India’s monetary policy framework, including the creation of a Monetary Policy Committee.

Q) Which law created the statutory framework for the Monetary Policy Committee?

A) Companies Act, 2013
B) Banking Regulation Amendment Act, 2015
C) RBI Amendment Act, 2018
D) Finance Act, 2016

Answer: D) Finance Act, 2016

Explanation: The Finance Act, 2016 amended the RBI Act and created the legal framework for the Monetary Policy Committee.

Q) What happens if the RBI fails to meet the inflation target for three consecutive quarters?

A) The MPC is dissolved
B) Banks are fined
C) Repo rate changes are stopped
D) The RBI must submit a report to the Central Government

Answer: D) The RBI must submit a report to the Central Government

Explanation: If the inflation target is missed for three consecutive quarters, the RBI must submit a report to the Central Government explaining the reasons and the steps being taken to bring inflation back under control.

Q) What does a 'dovish' monetary policy stance generally mean?

A) Raising interest rates sharply
B) Supporting economic growth through lower interest rates or rate cuts
C) Completely stopping liquidity in the market
D) Making no changes to monetary policy

Answer: B) Supporting economic growth through lower interest rates or rate cuts

Explanation: A dovish stance generally means the central bank is more focused on supporting economic growth and may favour lower interest rates or easier monetary conditions.

Q) When is the next RBI Monetary Policy Committee meeting?

A) October 6-8, 2026
B) December 2-4, 2026
C) November 10-12, 2026
D) January 5-7, 2027

Answer: B) December 2-4, 2026

Explanation: The next scheduled RBI MPC meeting after the October 2026 meeting is set to take place from December 2 to 4, 2026.