Institutional responsibility for controlling inflation in India
Question
In India, which one of the following is responsible for maintaining price stability by controlling inflation?
Options
Department of Consumer Affairs
Expenditure Management Commission
Financial Stability and Development Council
Reserve Bank of India
Explanation
Under the RBI Act, the Reserve Bank of India (RBI) is statutorily mandated to operate the monetary policy framework of the country. Its primary objective, guided by the Monetary Policy Committee (MPC), is maintaining price stability and targeting inflation (currently 4% with a ±2% tolerance band) while keeping in mind the objective of growth.
Answer: (d).
Question details
Year
2022
Paper
GS Paper 1
Question
Q68
Subject
Economy
Sub-topic
Monetary Policy & Inflation
Type
Factual single
Difficulty
Easy
Nature
Static
Source hint
RBI Act 1934 Flexible Inflation Targeting Framework
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