RTGS vs NEFT
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
The Reserve Bank of India (RBI) is the correct answer.
The RBI holds the statutory mandate to maintain price stability while keeping in mind the objective of growth. The RBI Act was amended in 2016 to introduce a formal flexible inflation targeting framework, tasking the Monetary Policy Committee to keep CPI inflation at 4% with a band of +/- 2%.
Answer: (d).
Question details
Year
2025
Paper
GS Paper 1
Question
Q68
Subject
Economy
Sub-topic
Banking & RBI
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
RBI Act 1934 Flexible Inflation Targeting Framework
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