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[Eligibility and selection of Members appointed by Central Government.

45ZC. (1) The Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of section 45ZB shall be appointed by the Central Government from amongst persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy:

Provided that no person shall be appointed as a Member, in case such person—

(i)   has completed the age of seventy years on the date of appointment as Member;
(ii)   is a Member of any Board or Committee of the Bank;
(iii)   is an employee of the Bank;
(iv)   is a public servant as defined under section 21 of the Indian Penal Code (45 of 1860);
(v)   is a Member of Parliament or any State Legislature;
(vi)   has been at any time, adjudged as an insolvent;
(vii)   has been convicted of an offence which is punishable with an imprisonment for a term of one hundred and eighty days or more;
(viii)   is physically or mentally incapable of discharging the duties of a Member of the Monetary Policy Committee; or
(ix)   has a material conflict of interest with the Bank and is unable to resolve such conflict.

(2) The Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of section 45ZB shall be appointed by the Central Government on the recommendations made by Search-cum-Selection Committee consisting of the following members, namely:—

(a)   Cabinet Secretary— Chairperson;
(b)   Governor of the Reserve Bank of India or his representative (not below the rank of Deputy Governor)— member;
(c)   Secretary, Department of Economic Affairs— member;
(d)   three experts in the field of economics or banking or finance or Monetary policy to be nominated by the Central Government— members.

(3) While selecting the Members of the Monetary Policy Committee, the Search-cum-Selection Committee shall follow such procedure as may be prescribed by the Central Government.]