Section 45ZC of RBI Act : Section 45Zc: Eligibility And Selection Of Members Appointed By Central Government

Explanation using Example

Here's a hypothetical scenario demonstrating the application of Section 45ZC of The Reserve Bank of India Act, 1934:

Imagine the Central Government is looking to appoint new members to the Monetary Policy Committee (MPC). They identify Dr. Arjun, a renowned economist with extensive experience in monetary policy. Before appointing him, they must ensure he meets the eligibility criteria under Section 45ZC.

Dr. Arjun is 65 years old, not an employee of the Reserve Bank of India (RBI), not a public servant, and has never been a Member of Parliament or any State Legislature. He has no criminal record, is mentally and physically capable, and has no material conflicts of interest with the RBI.

The Search-cum-Selection Committee, which includes the Cabinet Secretary, the RBI Governor's representative, the Secretary of Economic Affairs, and three nominated experts, reviews his credentials. Following the prescribed procedure, they unanimously recommend Dr. Arjun's appointment to the MPC, confirming he meets all the conditions of Section 45ZC.