Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) ? 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below :

Statement 1 is correct because the MPC is the statutory body mandated to fix the benchmark policy rate (Repo Rate) to maintain price stability while keeping in mind the objective of growth. Statements 2 and 3 are incorrect because the MPC is a 6-member body (not 12) chaired by the RBI Governor (not the Finance Minister), with external members appointed for a four-year term. The core concept tested is the institutional framework and composition of India’s monetary policy regime under the amended RBI Act, 1934.