The Flexible Inflation Targeting Framework (FITF) was introduced in India post the amendment of the Reserve Bank of India (RBI) Act, 1934 in __________.

Question

Accepted Answer

1. Background: The Government of India amended the Reserve Bank of India Act, 1934 through the Finance Act, 2016 to provide a statutory framework for monetary policy.

2. Result: Following this amendment, India formally adopted the Flexible Inflation Targeting Framework (FITF) under a Monetary Policy Framework Agreement between the Government and the RBI.

3. Key point: The FITF established an inflation target of $4\%$ with a tolerance band of $\pm 2\%$, implemented after the 2016 amendment.

Therefore the FITF was introduced post-amendment in 2016.

FINAL_ANSWER: c

Answer

Answer

Answer