New Delhi, July 24 (KNN) In the revised draft of Indian Financial Code (IFC), released on Thursday by the Finance Ministry, government has proposed to take away the authority from the RBI chief to veto the interest rate decision of the central bank's monetary policy committee.

At present, the RBI governor consults a Technical Advisory Committee, but does not necessarily go by the majority opinion while deciding on the monetary policy stance, reports a leading news agency.

The revised draft of IFC has also proposed that an all-powerful monetary policy committee would have four representatives of the government and only three from the central bank, including the 'RBI Chairperson' - thus giving full control to the government on policy rate.

The draft talks of 'RBI Chairperson' and not 'RBI Governor'. The RBI is headed by a governor, at present.

The IFC proposes that the monetary policy committee will be entrusted with the task of deciding the key policy rate and chasing the annual retail inflation target to be decided by the government in consultation with the RBI.

"Inflation target for each financial year will be determined in terms of the Consumer Price Index (CPI) by the Central Government in consultation with the Reserve Bank every three years," said the draft. The Finance Ministry has invited comments till August 8 on the revised draft. (KNN Bureau)