Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?

Question:

 

Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?

 

Solution:

·         With an agreement signed between the RBI and the government since February 20, 2015, the RBI decided to adopt the FITF as a framework for modern monetary policy.

·         In May 2016, the RBI Act, 1934 was amended to provide a legal basis for the implementation of the FITF.

Answered By: Harshit Yadav (Gwalior)