<Dl> <Dt> Reducing the Rigidity </Dt> <Dd> RBI tries to bring about the flexibilities in the operations which provide a considerable autonomy . It encourages more competitive environment and diversification . It maintains its control over financial system whenever and wherever necessary to maintain the discipline and prudence in operations of the financial system . </Dd> </Dl> <Dt> Reducing the Rigidity </Dt> <Dd> RBI tries to bring about the flexibilities in the operations which provide a considerable autonomy . It encourages more competitive environment and diversification . It maintains its control over financial system whenever and wherever necessary to maintain the discipline and prudence in operations of the financial system . </Dd> <P> The Reserve Bank of India Act, 1934 (RBI Act) was amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth . The Monetary Policy Committee is entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level . As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be from the RBI and the other three Members of MPC will be appointed by the Central Government . </P>

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