MUMBAI: The Reserve Bank of India on Monday postponed its three-day monetary policy meeting that was scheduled to begin from Tuesday.
While RBI did not cite any reason, experts said the meeting could not have taken place anyway, due to lack of quorum.
The six-member Monetary Policy Committee (MPC) currently has only three members, while four must be present to hold monetary policy meeting.
The terms of three external members — Chetan Ghate, Pami Dua and Ravindra Dholakia — ended last month but the government is yet to announce replacements for them.
Half of the panel, led by the RBI governor, comprises external independent members with a four-year term. External members are not eligible for re-appointment.
Earlier, the government had declined the central bank’s request to extend the tenure of the members till March 2020.
Instead, a panel led by Department of Economic Affairs secretary Tarun Bajaj was set up to select new members.
According to experts, the procedural delay could cripple crucial decision-making.
“The economy is facing a serious challenge and RBI has been leading from the front with quick responses through rate cuts etc. This delay could have been avoided,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.